The European Financial Transaction (a k a Robin Hood) tax scored a big legal victory on April 30, when a challenge regarding the legality of the tax brought by the British government was thrown out by the European Court of Justice. The ECJ has struck a serious blow for fairness, as the dismissal essentially chastises the British government for championing the interests of the UK’s financial industry over those of its citizens. David Hillman, spokesperson for the Robin Hood campaign, told The Guardian, “This futile legal challenge tells you all you need to know about the government’s misguided priorities: it would rather defend a privileged elite in the City than support a tax that could raise billions to tackle poverty and protect public services.”
What’s more, these “misguided priorities” of David Cameron’s government became all the more apparent last Friday, when an analysis of the Bank of England’s £375 billion stimulus program determined that those public funds, according to the International Business Times, “[have] made the wealthiest 5% even richer, worsened the economic recovery, made pension pots smaller, failed to stimulate business investment, and given a bonus to financial services.” To recap, then, Britain’s response to the financial crisis has included flogging for the finance industry at the ECJ and giving them a £375 billion gift from the public coffers—what one analyst actually calls a “Robin Hood tax in reverse.”
In this environment, then, the real, non-reversed Robin Hood tax has serious momentum within Europe, just as the eleven-nation coalition behind it is expected to make an important announcement about the first phase of the tax on May 5 or 6. The proposed tax includes a 0.1 percent tax on stock and bond trades and a tax of 0.01 percent on derivatives. It’s now expected that the tax will indeed be phased in, with the levy on stock-trades comprising the first step. Reportedly, the finance ministers involved in the negotiations plan to use the rest of the year to negotiate over taxes on derivative-trading, which could be introduced later in a second phase. While the German government is reportedly determined to get an agreement from the outset to include derivatives, there has been some resistance, including from the supposedly more left-wing French government.
The Robin Hood Tax is, as European FTT campaigners say, the “most popular tax in history,” and such high regard—even for something as seemingly unromantic as a 0.1 percent tax—isn’t difficult to understand: FTT revenue can be used to create jobs; spur economic development beyond the financial industry; and combat climate change, global poverty and HIV/AIDS. One measure of the tax’s popularity is that this week’s announcement about the FTT’s first phase has been scheduled to occur during the lead-up to the European Parliament elections of May 22–25, and support for the tax is expected to be a major vote-getter. Not exactly an American-election-style “October Surprise” to be sure, but certainly a signal to candidates: Robin Hood matters to European citizens. You can lend your name to the movement, too, by signing the “1 Million Strong” petition.