Thirty-five billion in revenue per year. This is the estimate made by the European Commission of the proceeds of the future tax on financial transactions. This tax was born from the idea of finding additional funding for the fight against poverty in the world. 11 countrieshave now decided to implement it at European level. As Development Ministers, we are moved to action, and invite our colleagues to join us in devoting a proportion of the proceeds of the Financial Transaction Tax to those in need of development assistance.
Despite economic growth, particularly in emerging countries, we should not forget that poverty is the harsh reality for 1.3 billion people who live on less than one euro a day. If social inequalities have been reduced in some countries they persist or are increasing in others. We are pushing on the international scene that between now and 2030 at the latest, humanity achieves the eradication of extreme poverty.
We are also facing new challenges: Future Development Goals after 2015 will require additional effort on our part. Global warming, leading to droughts, will lead to decreases in agricultural production and consequently increases in malnutrition and infant mortality. Furthermore, lack of development undermines entire regions. We are seeing it today in the Sahel and the Horn of Africa. This absence of development is a threat to peace and security. Development policies contribute to world stability and the preservation of global public goods such as climate and biodiversity.
To meet these challenges, it is clear that we also need, in addition to an even greater efficiency in our work, additional resources, while in Europe and elsewhere, we must restore public finances. Agreed tax on financial transactions offers this opportunity to contribute to these objectives, global challenges and public finances. The tax on financial transactions must not hinder the development of the real economy in Europe, or constitute an additional burden for small investors and small and medium enterprises. At the same time the tax will allow the financial sector to make a fair andsubstantial contribution to global public goods such as the eradication of hunger and climate protection. Its revenue could both facilitate the restoration of fiscal balance and provide new resources - a significant part of which should benefit the poorest countries.
We, the Ministers of Development, want our 11 European countries, and those who join us, to agree to devote to Development a portion of the proceeds of the tax on financial transactions. This windfall could fund the fight against major pandemics such as AIDS and malaria, and the fight against climate change and have dramatic consequences for the most vulnerable countries. Europe will contribute to a more just, more sustainable and more stable world. This is a historic opportunity, let us seize it.
Jean-Pascal Labille, Minister of Development of Belgium ; Pascal Canfin, Minister of Development of France ; Dirk Niebel, Minister of Development of Germany.
