Financial Transaction Tax, a tool to fight poverty and climate change


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Alpe Adria Green – international organization for environmental protection and nature

TTK: SI56-0510-0801-1891-125, Registration no.: 1173120000, tax no: 78020239

In Slovenia, we operate as an association in the public interest

Prešernova 26, 4270 Jesenice, Slovenia, EU; GSM: +386 51 311 450 / Tel: +386 4583 6640

Dear Commissioner

Commissioner for Development mr.Piebalgs,

Commissioner for Climate Action ms.Hedegaard,

Commissioner for Environment mr.Potočnik,

Re: Financial Transaction Tax, a tool to fight poverty and climate change

The Financial Transaction Tax (FTT) has been proven through the IMF, the EC and independent studies to be a credible, effective and growth friendly tax. It is a hugely popular tax, supported by 63% of European citizens, more than 1000 economists such as Nobel Prize winners Stiglitz and Sachs and thousands of campaigners around the world. As well as curbing destabilising speculation in financial markets, and raising much needed funds for social spending in Europe, an FTT could help overcome the injustice faced by poor families who are still suffering from an economic and climate crisis that was not of their making.

Thanks to the leadership of the European Commission and France and Germany, we are very likely to progress towards implementation by a coalition of the willing by the end of June. But we are now facing the risk that – contrary to the original idea that the FTT should be an innovative financing tool for development and climate change – the revenues will be used solely to fill the deficit or finance EU projects. The World Bank estimates that 64 million people have been pushed into poverty by the global financial crisis. In Copenhagen, developed countries pledged to mobilise $100bn by 2020 to help developing countries adapt to climate change and transition to a low carbon development pathway – but the actual costs of climate change in developing countries are likely to be at least twice as high. The FTT is an historic opportunity to face these challenges. That is why prominent personalities like, Bill Gates, Kofi Annan, Desmond Tutu, the African francophone Finance ministers and most recently French President Francois Hollande have spoken out for urgent action to implement such a tax to raise money for people living in poverty.

Commissioner Semeta’s reference at the European Parliament that FTT can be used “to finance growth-enhancing measures, support growth-friendly tax reforms or help fund global challenges such as development and climate change” is a first step in the right direction. However we expect stronger support from the European Commission. We therefore urge you as Development, Climate change and Environment Commissioners to:

• Publicly support that a significant part of FTT revenue should be allocated to development and the fight against climate change;

• Encourage EU Member States to allocate FTT revenues to development and climate change;

• Take up the opportunity of Rio+20 and the G20 to raises the issue of an FTT for development and climate change.

• Ensure that the European Commission joins the Leading Group on Innovative Source of Finance.

Alpe Adria Green international  (Slovenia)

AAG-Greenaction Transnational (Italia)

AAG-Ecological Society (Macedonia)

AAG-EKO KVARNER (Croatia)

AAG-Association Eko zeleni (Bosnia and Herzegovina)

AAG-Association  Vojvođanska zelena iniciativa (Serbia)

AAG-Association  Pokret Zelenih Breza (Serbia)

AAG-EUROMOST (Montenegro)

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About Alpe Adria Green org. 051 311 450

President Alpe Adria Green - international environmental NGOs
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