Restoring social justice through the tax on financial transactions

By Theodoros TSIKAS 

Political Scientist, 

Communication Team member,

Pan-Hellenic Socialist Movement-PASOK, 

Greece

It is common knowledge that Greece is going through a deep economic and social crisis. Many people find themselves in a very difficult position due to financial problems. Recession deepens and unemployment rises. At the same time, no investment is taking place due to lack of liquidity. Social benefits have been reduced dramatically, affecting the most vulnerable population groups.

But the crisis doesn’t just involve Greece. Many countries not only in South Europe, but all over Europe, face a new bleak reality. It is undeniable that new tools are needed in order to deal with the new rising issues.

To my belief everyone knows that this tax is not a solution on its own. It is not adequate enough to restore social justice, but it is a positive step in the right direction, one major link in the chain. The taxpayers, the national private and public sectors should not be the only ones to pay for the crisis.

The imposition of a tax on all financial transactions should bring a significant amount of resources which could be used for promoting development, creating jobs and meeting social needs.

The effort to decrease financial instability and shift recourses out of the bloated international financial sector and into the real economy could also be enhanced. The proposal suggested today requires international and transnational cooperation.

Furthermore, the implementation of this tax is also a matter of justice, a matter of rebalancing the democratic decision making process on one hand and the international financial markets and transactions on the other. In other words the aim is to create a new framework of a clear – transparent democratic regulation of the markets, which will pass over the national borders.

To this direction, the international and intergovernmental organizations must play a very important role, by addressing the new inequalities and promoting a new strategy for growth, jobs and a new modern welfare state. #thesouthintalk

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