Austria wrote a letter to European leaders expressing regret that discussions on an EU directive for a financial transaction tax had stalled. Austria fully supports the European Commission's proposal for such a tax and does not believe it will necessarily lead to capital flight or damage markets as some member states fear. As the ratification process in Austria requires a 2/3 majority, credible steps toward implementing the tax are needed. Austria proposes moving forward with an enhanced cooperation initiative involving at least 8 member states to implement the Commission's tax proposal if no EU-wide agreement can be reached. Austria hopes this proposal will receive support from leaders as a way to advance the tax initiative.

1. To
Martin Schulz, President of the European Parliament
Members of the European Parliament
Algirdas Šemeta, European Commissioner for Taxation
and Customs Union, Audit and Anti-Fraud
Jean-Claude Juncker, President of the Eurogroup
European Ministers of Finance
Vienna, June 2012
GZ. BMF-14.00/0040-BüroBM/2012
Dear colleagues,
As Austria considers a Financial Transaction Tax to be a promising instrument to tackle
current problems and envisages introducing such a tax we noted with regret that recent
discussions revealed how improbable a compromise on an EU-Directive is. Unfortunately
neither the Commission proposal nor the joint efforts of the Danish Presidency and the
Commission could convince some Member States to give up their rejection of the proposal.
Having regard to the special Austrian situation concerning the ratification process of Article
136 of the TFEU, where a 2/3-majority is required in Parliament, and negotiating partners
are calling for credible steps towards the implementation of a Financial Transaction Tax as a
prerequisite for the ratification process, the current standstill in regard to the Commission
proposal is even more regrettable.

2. Austria fully supports and highly appreciates this Commission proposal and does not share
the concerns voiced by skeptical Member States that the introduction of a Financial
Transaction Tax necessarily entails capital flight and damages to financial markets. With a
view to the state of negotiations on the Directive Austria would thus be prepared to
implement the Commission proposal also on the basis of enhanced cooperation together with
at least eight other member states and wants to call on other member states, especially
those who have already signed the letter to the Danish Presidency, to join this initiative.
We do hope that our proposal finds your support and that you will support our endeavour to
start with enhanced cooperation for a financial transaction tax.
Yours sincerely,
Maria Fekter Andreas Schieder Werner Kogler
Federal Minister of Finance State Secretary of Finance Deputy Spokesperson
of the Republic of Austria of the Republic of Austria of the Greens
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