European Union leaders have called for a new global tax on financial transactions to prevent banks from taking excessive risks that could bring about another financial crisis.

European Commission President José Manuel Barroso last Friday urged the International Monetary Fund to implement the so-called “Tobin Tax” in order to limit risks in the financial sector.

The tax is named after American economist James Tobin, who was the first to propose the idea in the 1970s. Tobin believed that cumbersome accounting requirements would prevent the tax from being implemented, but modern technology has made the idea feasible. In the suggested framework, a modest amount, ranging from .005 percent to 1 percent per trade, would be taxed. The effect of the tax would be slight for ordinary investors who make only occasional stock transactions, but high-speed speculative trades, which are generally the most risky, would be considerably slowed.

The push for the tax came at the end of a two-day summit of EU leaders in Brussels.

Barroso told a news conference that “The conclusion … is to propose a global financial transaction levy. It wouldn’t be fair that some impose very heavy burdens and others don’t. I think it makes sense that a sector that created such a problem for our economies, our taxpayers … also makes a contribution to the overall economy.”

Since the economic downturn shook the markets in September 2008, the EU has been eager to avoid a repeat crisis. Supporters of the tax believe it would accomplish just that.

Whether or not the calls for the tax surmount U.S. opposition, such a bold proposition from Europe should be taken seriously. In light of the EU’s prophesied future as the nucleus of global trade and commerce, this is not an insignificant request. It is in fact a harbinger of bolder things to come.

History offers a powerful lesson: The nation that sets global economic standards and controls the world economy possesses the strategic power to shape the world. To learn more about this trend and its prophetic significance, read “Bending the World to Its Rules” and “EU Ruling Trumps the World.”