Perhaps the main reason for the current economic crisis is that bankers, starting first in the US with its arrogant and greedy capitalism, took control also in Europe of the real power and decision making from the society and the politicians, establishing the financial tyranny of our times. As a result, the social construct of Europe , its welfare system and living standards all collapsed .
How society could take again control and EU leaders to reinstating democracy, justice and equality in Europe?
The answer is very simple : bankers and all financial transactions should be subject to a fair VAT tax for all their business. If a 10% VAT is applied as a Financial Transaction Tax (FTT), all the debt of the EU will be erased from the revenues of this tax in just 12 months!!
Look in three simple calculations how this works, based on analysis and data provide by the Costas Kataras Organisation (www.costaskataras.org )
# EU GDP : 13 trillions
# Financial Transactions (FT) in EU: 700% of EU GDP or 100 trillions
# 100 trillions in FT X 10% VAT = 10 trillions
The EU total debt is at 85% of GDP or 10 trillions and could be erased in almost one year !!
When a small farmer in Catalonia and a souvlaki restaurant in Crete pays VAT at 15% to 25% levels, its only fair for the bankers to pay their share . Besides, as studies suggest, this creates a more equal and healthier society, for the long term benefit of all. Including arrogant bankers and greedy hedge funds managers.
( The possible argument that financial transactions are “investments” and not products/ services has been further weakened after the economic crisis, and it is not even worthy of a detailed analysis and debate.)