Current ECP based FTT initiative

On 14 February 2013, the EU Commission released its draft Directive for the introduction of a Financial Transaction Tax (FTT) under the enhanced co-operation procedure (ECP). So far, 11 EU Member States (Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain) have made formal requests to take part in the ECP, although other Member States are free to join at any time. The new proposal is similar to the Commission's original June 2011 proposal for an EU wide FTT, albeit now applicable only to participating Member States. However, the already very wide potential impact of the proposal has been expanded further, affecting many financial institutions in non-participating Member States and even outside the EU.

Further information on the ECP based FTT initiative is available below.

September 2015

EU Financial Transaction Tax

An overview of proposals for a multilateral EU Financial Transaction Tax (FTT), incorporating major developments up to 01 October 2016 and looking ahead to the rest of 2016 and beyond. (04 October 2016))

Financial Transaction Tax: back in from the cold?

Reports suggest that participating Member States are planning to reinvigorate the Financial Transition Tax (FTT) proposals over the next few months. (16 September 2015)

February 2015

EU FTT attempts yet another comeback

Participating Member States reiterate commitment to introduce multilateral FTT by 01 January 2016. (06 February 2015)

December 2014

EU Finance Ministers miss FTT deadline...again

The EU Financial Transaction Tax (FTT) has hit another setback as Finance Ministers fail to meet their end of year deadline for agreeing the first phase of the proposed tax. (10 December 2014)

November 2014

EU Finance Ministers herald limited progress towards EU FTT

Participating Member States are still hoping to agree a first phase EU FTT by the end of 2014, but disagreement remains over its scope and the basis for levying the tax. (10 November 2014)

May 2014

EU FTT state of play

Note from EU Council Presidency and Joint Statement by participating Member States. (07 May 2014)

April 2014

UK loses FTT challenge

ECJ dismisses UK's legal challenge to proposed EU FTT as premature. (30 April 2014)

December 2013

EU FTT on shifting sands

A review of key EU FTT developments since September 2013 and a look forward to likely future developments. (11 December 2013)

October 2013

Hot tax topics for banks

A practical high level overview for non-tax lawyers in banks of some current hot tax topics affecting banks, including the EU Financial Transaction Tax (FTT), specialist input from Michele Citarella on the Italian FTT, and also base erosion profit shifting, FATCA, and the UK’s code of conduct for banks. (17 October 2013)

EU FTT: Where are we now?

A review of the current status of the EU Commission’s FTT proposal following the recent leak of the opinion by the EU Council Legal Service concluding that a key aspect of the current proposal is unlawful. (03 October 2013)

September 2013

Another blow to EU FTT proposal

According to press reports today, the EU Council’s legal advisers have concluded that aspects of the EU Commission’s proposed Financial Transaction Tax (FTT) may not be lawful. (10 September 2013)

July 2013

FTT in retreat

Algirdas Šemeta, the European Commissioner in charge of tax policy, has conceded that the EU Commission’s proposed FTT will be both delayed and watered down (04 July 2013)

April 2013

UK challenges legal validity of EU FTT

The UK has launched legal proceedings against the EU Financial Transaction Tax, challenging the legal validity of the current proposals on the basis of their extra-territoriality. (Reviewed 06 June 2013)

Comments to the EU Commission on the EU FTT

Simmons & Simmons has submitted detailed queries and comments to the European Commission on its proposal for an EU Financial Transaction Tax. (18 April 2013)

March 2013

Financial Transaction Tax and capital markets and structured finance transactions

This article highlights the practical implications of the proposed multilateral EU FTT on capital markets and structured finance transactions. (26 March 2013)

FTT implementation timeline under ECP

An interactive timeline tracking important past, present and scheduled future developments in the implementation of a multilateral EU FTT under the enhanced co-operation procedure (ECP). (22 March 2013)

February 2013

The EU FTT takes shape

Recording of a conference call, held on 18 February 2013, examining the European Commission's proposal for a Directive on the introduction of a Financial Transaction Tax (FTT) under the enhanced co-operation procedure and its potential implications for the banking and funds sectors. (18 February 2013)

Financial Transaction Tax: FAQs on Commission enhanced co-operation procedure proposal

The key features and likely practical implications of the Financial Transaction Tax proposed by the European Commission in its draft Directive released on 14 February 2013. The proposed FTT will apply only to the (currently) 11 Member States which have chosen to participate in it, but has a number of extra-territorial aspects which will result in FTT being imposed on numerous market participants located outside of participating Member States (or even outside the EU). (15 February 2013)

January 2013

EU Council gives blessing to Financial Transaction Tax

The EU Council has approved use of the enhanced co-operation procedure for the introduction of a common EU Financial Transaction Tax. The EU Commission will now proceed to present a detailed tax proposal. This is expected in the next few weeks, though the precise timeframe for this is currently unclear. (22 January 2013)

November 2012

Update on EU FTT 

At a meeting of EU Finance Ministers on 13 November 2012, any hopes that the EU Commission may have harboured of pushing through its beloved EU Financial Transaction Tax by December 2012 were well and truly quashed. (21 November 2012)

October 2012

EU Commission paves way for common EU FTT

The EU Commission has presented a proposal to the EU Council to authorise use of the enhanced co-operation procedure (ECP) for the introduction of a common EU Financial Transaction Tax (FTT) in certain Member States. (24 October 2012)

EU Financial Transaction Tax given new lifeline

The original FTT was defeated at EU level, but now a smaller group of EU Member States has requested that the EU Commission progress a less ambitious FTT under the enhanced co-operation procedure, which would only be applicable to States wishing to participate. (11 October 2012)

Quorum reached for FTT enhanced co-operation procedure

11 EU Member States have expressed a willingness to proceed with the enhanced co-operation procedure (ECP) for introducing a multilateral financial transaction tax (FTT) across participating Member States. (11 October 2012)

June 2012

Financial Transaction Tax defeated at EU level: alas that’s not the end of the story ...

The Financial Transaction Tax has been defeated at EU level. A smaller group of EU Member States are seeking a less ambitious FTT applicable only to States wishing to participate. (28 June 2012)

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.