Planning a European tax on financial transactions countries substantially reduced levy, cutting costs up to 90%, and delay the full launch for several years, it will be a major victory for banks.
Such radical changes would weaken the impact of the tax, pushed for German Chancellor Angela Merkel and popular financial crisis blame bankers voters.
Amendment has not yet been formally proposed, but officials working on the project told Reuters.
Banks lobbied furiously against the tax, because Germany, France and nine other European countries will be charged. It is also from the UK to fight legal challenges, which will not participate in tax, but he was afraid of being forced to gather representatives of other EU Member States from London's financial center, and promote business.
According to the latest model, the standard rate for the sale of bonds and stocks may be just one transaction value of 0.01% to 0.1% of the original blueprint drafted in Brussels. This will increase only about 350 million euros, rather than the initial forecast of $ 3.5 billion, a senior official said.
Now that the tax may be introduced more gradually, rather than applied from 2014 stocks, bonds and certain derivatives transactions, it may only apply next year the shares. Bond transactions will not be taxed for two years and derivative products, or even later.
Transfer can be completely scrapped, for example, taxes push mobile trading foreign traders to avoid paying.
Tax supporters say such a change would make it toothless.
"Today's question is whether the Prime Minister Angela Merkel's word is worth anything or center-right coalition bent again lobbying pressure from the financial sector," Juergen Trittin, a leading German Green Party politician , told Reuters reporters.
Financial transaction tax (FTT) resurrected the idea originally conceived by the U.S. economist James Tobin in more than 40 years ago, has been an important symbolic meaning for politicians to show their resolve to blame the financial crisis caused by banks.
However, in the implementation of the practical challenges and political obstacles.
"The whole thing will change a lot, said:" an official, he has been closely following the negotiations levy, October finally agreed by the European Commission drafted. "It's not going to survive in its present form."
"You can introduce it on a staggered basis, said:" The second official. "We started the lowest tax (0.01%) and increased it bit by bit."
Any final decision was to keep countries have signed and months of time, for example, Germany is unlikely to be before the elections in September back to any reduction in the public levy, because Merkel's coalition has been committed to it.
Brad Semeta, the European Commission is responsible for tax policy spokeswoman said, a lot of work still to do the technical proposal.
According to the speed of progress from here, it is still feasible to be implemented jointly FTT in 2014, in January 2014 although it looks unlikely, "she said."
Profound differences
7 months ago, Germany, France and other 13 countries - Italy, Spain, Austria, Portugal, Belgium, Estonia, Greece, Slovakia and Slovenia - agreed to advance levy, failed to persuade all 27 EU member states have signed.
Some cash-strapped countries have begun a new source of income when the economic downturn and rising unemployment, weakening a welcome windfall tax count. But in a world of billions of euros, you can move your finger stroke, and even some supporters of tax getting cold feet.
A proposal for discussion involving the euro zone countries, said the Ambassador, the early enthusiasm waned as the government aware of the potential pitfalls.
"If there is one thing that is clear, and that is a financial transaction tax is not going to fly away had hoped," he said.
These views echo Daniel Gros, Centre for European Policy Studies, Brussels think-tank leader.
"Because of its design, it does not make any sense," he said, advocating a more straightforward bank sales tax.
Taxes face many obstacles, including how it should be collected and whether it should be imposed is based on the buyer or seller, issue or transaction security.
In the current design, whether buyer or seller, if it is based on one of the participating countries can impose levy even if the transaction occurs in other places, such as in London. Luxembourg and the United Kingdom fearing it would hit its trading and financial center of the tasks imposed wood collection, though not involved.
In the group of 11 countries, Italy and France have expressed over government debt widening the tax shares, all that it might stop investors to buy its bonds concerns.
In addition, it is unclear how complex derivatives transaction tax may be levied - the market value of one trillion euros - or how not to impose any tax areas in order to prevent a large number of activities.
"The risks are that if you did not participate in some countries, you have a number of countries in the tax operations to the no-tax country," said one official familiar with the French government's thinking. "This is a step by step approach is meaningful."
Luxembourg investment fund industry association Antoine Kremer said that expanding industry levy will not solve the problem.
Lower tax rates and scope of the impact will be reduced, but not solve the fundamental problem, "he said." "FTT will reach global investors, retirees and the competitiveness of European financial products."
 



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