Taxing Finance

Toby Sanger

The financial and economic crisis has led to a long overdue re-evaluation of the role, regulation and taxation of the financial industry around the world.
 

The IMF estimated that the crisis would cost G20 countries over $1 trillion in increased deficits; costs citizens are now paying for through public spending cuts, austerity measures and consumption tax increases. This alone is a good reason for the unprecedented interest in introducing new taxes on banking and the finance industry. Despite this, the commitment by G20 leaders at their September 2009 summit that the “financial sector should make a fair and substantial contribution” towards paying for some of the costs of the crisis remains unfulfilled.
 

Following strong advocacy by civil society and labour organisations, a significant advance was made in June 2011 when the European Commission recommended a European financial transactions tax be introduced by 2018 at the latest. It estimated this would generate €37 billion (US$52 billion) a year to fund the European Union’s budget activities.
 

Beyond paying for some of the costs of the crisis, there are also a number of other compelling reasons for increasing taxation of the financial sector.

Building Progressive Alliances

Asbjørn Wahl

The social conflict in Europe has intensified strongly over the past couple of years, in the wake of the financial crisis. The labour and trade union movement has been on the defensive ever since the neoliberal offensive started around 1980. The balance of power in our societies has thus shifted enormously over the past 30 years - from labour to capital, from democracy to market forces. Time is ripe, therefore, to fight back, to build broad social alliances and to reassess our strategies and tactics.

In this article I will take a closer look at the current situation, address the question of alliance building and particularly summarise some of the experiences we have had in building alliances in Norway. My point of departure is that social development is a question of power, social power, and strength. If we are not able to mobilise sufficient social power behind our many excellent demands, they will only end up as wishful thinking.