The tax on financial services, labelled the financial transactions tax (FTT), has been back in the news as a tax the EU could charge in order to secure a new source of revenues. These it needs to cover expenditures arising from the ever rising load of operations it is required to carry out. Some countries (including I would imagine Malta) are opposing the idea for diverse reasons.
In the past, Malta opposed the tax as it could affect badly our financial services sector. Or it would argue that if FTT were to be introduced, it should be necessary first to ensure that the same is happening worldwide, not just in Europe.
Now, to be honest, if the argument were not on the table that the tax would badly hit the Maltese economy, it would be difficult to resist the proposal. From the economic perspective, financial transactions should be taxed just like any other commercial activity. The same applies from the ideological/social point of view, since in general, the widest use of financial services occurs among the wealthier.
Actually – this is no secret – the Maltese delegation in the socialist and democratic (S&D) group of the European Parliament is totally isolated on the topic. At present, the S&D are running a campaign to prop up the message that the introduction of the FTT is among the top political aims of the group!
***
HISTORY
History gets written according to the views of those who “have won”. That verdict is well known. This also means that whoever has been powerful enough to oppress others and make them submit, ended up transmitting to such others “his” own values. As an example, one could just recall the Roman Empire.
Possibly though, the first important occasion that could be mentioned where the version transmitted by inherited history has been successfully contested relates to Western imperialism. The latter succeeded in dominating the larger part of the globe, because it enjoyed a significant technological advantage over the rest.
In recent times, the truth regarding what really happened under imperialism (and what did not) has been rewired and is being taken on board as the truth by more and more people. The process did not simply concentrate on the racist urges which fed imperialism but went beyond.
***
CONSTITUTIONAL CHANGES
On decisions regarding appointments by Parliament to positions having constitutional relevance, the government has done well to insist that if after two votes, agreement has not been reached with a two thirds majority, then a decision should be taken by simple majority. It is not an ideal solution but there can hardly be an alternative to it.
Otherwise, the situation could become rapidly blocked. About such a conclusion there can be little doubt, given the polarised environment within which Maltese politics evolve.
Experience shows that unless rapid agreement is reached on a given matter, no agreement between the two sides of Parliament can be foreseen. The idea that fullscale negotiations should continue till a compromise is reached appears to be a reasonable premise – but will not work in practice.
There is another problem to consider if a compromise at all costs has to be attempted. For given posts, inadequate people could be selected, simply because they would have in the past, trod on nobody’s toes. They might have achieved this either on grounds of mediocrity or because they’ve been good courtiers and flatterers vis à vis all concerned.