On 19 March 2013 Dr John Vella gave evidence before the House of Lords EU Sub-Committee A (Economic and Financial Affairs) on the EU Commission's proposal to introduce a Financial Transaction Tax (FTT) through the Enhanced Cooperation Procedure.
Dr Vella argued that the introduction of the FTT as proposed by the Commission was not a good idea. The criticism levelled at the proposal for an FTT put forward by the Commission in 2011 stood. Some of the proposed tax's objectives were not justified and, in any event, there were better instruments to achieve them.
Dr Vella also pointed out that despite being introduced by only 11 Member States the tax would have consequences for other Member States, like the UK, who were not introducing the tax. Some consequences could be positive but others would certainly be negative. He argued that the Commission should have explored the consequences for these non-participating Member States more fully.
A webcast of the session can be found at:
The letters written by the Chairman of the Committee to the Financial Secretary to the Treasury following the evidence can be found here: