Renowned economists, activists, millionaires, and political figures made a significant move by submitting the European Citizens' Initiative for the implementation of a European wealth tax on the top 1% wealthiest individuals. This initiative has the potential to compel Brussels to take a decisive stance on the matter.

A joint statement by Oxfam, a non-governmental organization that co-endorsed the initiative, revealed that "personalities from seven European countries have submitted the European Citizens' Initiative, urging the European Union to adopt a permanent annual tax on the largest fortunes in Europe."

The primary objective of this initiative is to pool resources and combat poverty, inequality, and the pressing climate crisis in Europe and the least developed countries. The NGO further elucidated that an annual tax on European billionaires' fortunes, set at a maximum of 5%, could yield approximately 250 billion euros each year.

The European Citizens' Initiative functions as a mechanism through which European citizens can petition the European Commission to propose new legislation. If the Commission affirms within the next month that this citizens' initiative is viable, the initiators will have a one-year period starting from July to collect one million signatures across the seven EU countries.

Should the initiative achieve success, the European Commission will have three months to respond. It may choose to proceed with the initiative and initiate the legislative process or provide a detailed justification for potential rejection.

Among the initiators of this European Citizens' Initiative is the esteemed French economist, Thomas Piketty. Oxfam highlighted his views, emphasizing that a substantial portion of the fortunes held by the wealthiest individuals in Europe either evades adequate taxation or remains untaxed altogether.

Piketty underscored the potential for change, stating, "European institutions can rectify this situation by attentively considering the voices of their citizens," while advocating for a fairer tax system through the introduction of a progressive wealth tax in Europe.

The global rise in inequality has become a pressing issue, impacting 70% of the world's population and hindering long-term social and economic development. To combat this, multiple civil society organizations, academics, and social movements have already proposed a wealth tax targeting the richest individuals. This tax would reverse the trend of rising inequality by reducing the burden on the needy and generating revenue from those most capable of paying. Surprisingly, even institutions like the World Bank and the International Monetary Fund have acknowledged the need for a wealth tax to address persistent income inequality. Additionally, a wealth tax aims to alleviate social unrest, correct regressive tax systems, combat rampant tax evasion by the wealthy, and curtail unearned profits and corporate tax breaks. 

As of the end of May this year, the European Commission has received 123 requests to initiate the European Citizens' Initiative since its establishment in 2011. Of these, 101 have been approved, enabling the commencement of signature collection.

Presently, only nine initiatives have surpassed the requisite threshold of one million signatures and have been formally submitted to the European Commission. These encompass diverse objectives such as ending animal breeding in cages, safeguarding bees, promoting cruelty-free cosmetics, and banning the trade of shark fins.