Work on financial transaction tax to go on, EU executive says

VILNIUS | Sat Sep 14, 2013 7:26am EDT

VILNIUS (Reuters) - The European Commission rebuffed on Saturday an EU legal opinion that questioned the legality of a planned financial transaction tax and said work on the levy in 11 European Union countries would go on.

The legal services of the European Council, the institution which represents governments of the 28-nation EU, said in their 14-page legal opinion dated September 6 that the Commission's transaction tax plan "exceeded member states' jurisdiction for taxation under the norms of international customary law".

European Union finance ministers discussed the financial transaction tax briefly on Saturday, with the Commission saying there was a misunderstanding on the opinion.

"We are confident that the Commission's arguments and arguments of the legal service of the Commission will demonstrate very clearly to our member states that the approach which has been taken in the proposal is the correct one and does not breach any provisions of the Treaty," European Commissioner Algirdas Semeta, who is responsible for taxation told reporters.

Germany, France, Italy, Spain, Austria, Portugal, Belgium, Estonia, Greece, Slovakia and Slovenia were planning to adopt the tax on stocks, bonds, derivatives, repurchase agreements and securities lending.

Semeta said first reading of the proposal by the member states was already concluded.

"I believe that we will present arguments to our member states for the next meeting of the Council working group. So the work is in progress and I do not see any reasons to stop this work or to make some additional reflections," added Semeta.

Britain, the bloc's largest financial center, and 15 other EU member states refused to support the transaction tax proposal raising questions about how it would work with only some members participating.

(Reporting by Martin Santa; editing by James Jukwey)

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Obama to mark 5-year anniversary of U.S. financial crisis

U.S. President Barack Obama speaks during a cabinet meeting in the West Wing of the White House in Washington, September 12, 2013.

Credit: Reuters/Jason Reed

WASHINGTON | Sat Sep 14, 2013 2:57pm EDT

WASHINGTON (Reuters) - President Barack Obama will mark the five-year anniversary of the U.S. financial crisis on Monday in an effort to move back to his domestic agenda after weeks of dealing with Syria.

When Wall Street came to a near collapse in 2008, the resulting economic crisis helped propel then-Democratic presidential nominee Obama to the White House.

But the economy's slow recovery from the recession has been a difficult challenge for Obama, who in recent weeks has been focused largely on foreign policy in trying to mount an international response to a chemical weapons attack in Syria.

A White House official said Obama will deliver remarks in the White House Rose Garden on Monday to mark the fifth anniversary of the financial crisis, which was accelerated on September 15, 2008 when the Lehman Brothers firm filed for bankruptcy protection.

The Democratic president will focus on the positive, discussing progress made and highlighting his prescriptions for boosting job creation amid budget battles expected with Republicans in Congress in the weeks ahead.

He is also expected to urge his Republican opponents in Congress not to threaten to shut down the government over the budget and to support raising the debt limit. Without new spending authority, most U.S. government agencies would have to close their doors on October 1 in a replay of politically painful shutdowns during the mid-1990s.

(Reporting By Steve Holland; Editing by Doina Chiacu)

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