Financing for Development - UN-Konferenz zur Entwicklungsfinanzierung 2001

	Pressemitteilungen
Common Press Release: European NGO Caucus 19th March Monterrey conference ignores the elephant Huge opportunity to stabilize markets and generate substantial aid revenue, new German government study shows currency tax is feasible and desirable Delegates at the UN Financing for Development are in danger of ignoring one of the biggest single ideas on the current political agenda to tackle instability and raise huge funds for development. The Currency Transactions Tax (CTT), currently hidden within an obscure part of Consensus text, is one of the big demands of civil society at Monterrey and beyond and has already been taken up by a number of governments. "If governments are serious about confronting financial instability, and the damage it does to developing countries, surely they are missing one the obvious solutions" says Steve Tibbett, Campaigner with the UK anti-poverty group War on Want. "The Currency Transactions Tax is the one big idea that has wide political backing that can help protect vulnerable economies. It is like there is an elephant in the room and no one is mentioning it." A German government study launched today confirms that the tax is both feasible and effective. The study's findings make it hard for skeptics to dismiss the CTT as technically impossible. It is now clearly a political choice for governments. Following the example of parliaments in Canada, France and Belgium, world leaders can no longer duck the issue, say European NGOs at Monterrey. "After the findings of this study, Governments should stop going round in circles. Now is the time for them to work out how to implement the tax rather than waiting for yet another feasibility study, " says Rudy de Meyer of the Belgian NGO coalition. Any explicit references to the CTT were left out of the text, mainly because of US opposition and a passive EU position. All that remains is a call to take into account the delayed study of the UN Secretary General on 'Innovative Sources of Finance'. The Consensus text makes much of the problems with financial markets but is woefully short of adequate remedies. NGOs believe that the tax is an important first step towards preventing destabilising financial crises and should be taken up without delay. The tax could raise billions for sustainable development, with an opportunity to earmark at least 50% for realizing gender equality. An initiative at Monterrey could be taken up by single and multiple governments and pushed into the agenda of Rio + 10 Summit on Sustainable Development and other multilateral negotiations. Notes for Editors: 1. The German Development Ministry will launch its study on the CTT today at a side event at 1.15 2. For further comment contact Martin Koehler on 04481 809 88160 or Steve Tibbett on 044 818671 9734

Pressemitteilungen

Common Press Release:
European NGO Caucus 19th March

Monterrey conference ignores the elephant

Huge opportunity to stabilize markets and generate substantial aid revenue, new German government study shows currency tax is feasible and desirable

Delegates at the UN Financing for Development are in danger of ignoring one of the biggest single ideas on the current political agenda to tackle instability and raise huge funds for development. The Currency Transactions Tax (CTT), currently hidden within an obscure part of Consensus text, is one of the big demands of civil society at Monterrey and beyond and has already been taken up by a number of governments.

"If governments are serious about confronting financial instability, and the damage it does to developing countries, surely they are missing one the obvious solutions" says Steve Tibbett, Campaigner with the UK anti-poverty group War on Want. "The Currency Transactions Tax is the one big idea that has wide political backing that can help protect vulnerable economies. It is like there is an elephant in the room and no one is mentioning it."

A German government study launched today confirms that the tax is both feasible and effective. The study's findings make it hard for skeptics to dismiss the CTT as technically impossible. It is now clearly a political choice for governments. Following the example of parliaments in Canada, France and Belgium, world leaders can no longer duck the issue, say European NGOs at Monterrey.

"After the findings of this study, Governments should stop going round in circles. Now is the time for them to work out how to implement the tax rather than waiting for yet another feasibility study, " says Rudy de Meyer of the Belgian NGO coalition.

Any explicit references to the CTT were left out of the text, mainly because of US opposition and a passive EU position. All that remains is a call to take into account the delayed study of the UN Secretary General on 'Innovative Sources of Finance'. The Consensus text makes much of the problems with financial markets but is woefully short of adequate remedies.

NGOs believe that the tax is an important first step towards preventing destabilising financial crises and should be taken up without delay. The tax could raise billions for sustainable development, with an opportunity to earmark at least 50% for realizing gender equality. An initiative at Monterrey could be taken up by single and multiple governments and pushed into the agenda of Rio + 10 Summit on Sustainable Development and other multilateral negotiations.

Notes for Editors:
1. The German Development Ministry will launch its study on the CTT today at a side event at 1.15
2. For further comment contact Martin Koehler on 04481 809 88160 or Steve Tibbett on 044 818671 9734