Study of German Ministry for Development:
Tobin Tax is feasible - Globalisation Critics Score Success

Bonn, 20/2/2002

"This success is very encouraging", says Peter Wahl, expert on Finance Markets of the German NGO WEED (World Economy, Ecology and Development) and of ATTAC Germany. "The study refutes the main objections raised against a Tobin Tax and shows the feasibility of such a tax. Now it is not any longer "if" but "how" to introduce it."

German Development Minister Ms. Wieczorek-Zeul introduced the study, written by Paul B. Spahn, a Finance Economist formerly working for the IMF, yesterday at a conference in Berlin.

The study suggests - beyond the Tobin Tax - that transition-, emerging and development countries as well as industrialized countries outside the big currency zones should be enabled to raise an additional tax. Such an automatical adaption of the tax will prevent speculative bubbles and attacks The study also points out that it is not necessary for all countries to participate in order to introduce a Tobin Tax. It can be imposed "by single OECD counries or - even better - within a group of countries, for example in the EU", Spahn explains.

"The international movement against corporate driven globalization will gain enormous momentum from the findings of the study", says Wahl "Now it is important that the EU will take the first steps. We call on the German Government to take the initiative. Especially the German-French Working Group installed by Schröder and Jospin should take the opportunity and push the Tax in the Euro zone."

A detailed comment of the study can be downloaded here as PDF-File.

The English version of the Spahn study on Tobin Tax, commissioned by the German Development Ministry, is available at: www.wiwi.uni-frankfurt.de/professoren/spahn/tobintax