Eurozone’s FTT faces triple blow

Resentment against the Eurozone’s Financial Transaction Tax (FTT) continues to grow after UK Prime Minister David Cameron attacked the levy and German businesses warned it would harm even non-financial firms.

The FTT is a new proposal introduced by the Eurozone to make the financial sector pay for the damage it caused in the crisis, CityAM reported. However, the ramifications of the tax are likely to extend beyond financial firms, and could hurt normal customers and investors too.

Britain has stepped up its campaign against the charge after Mr Cameron told a meeting of international investors that the tax’s main effect would be to drive finance firms and jobs out of the EU altogether. German businesses have also opposed it and the country’s Finance Minister said the tax is not a priority, dealing a triple blow to the Eurozone’s proposals.

“The FTT is not a good idea. Unless it is introduced in the same way all over the world, it is a mistake for Europe,” the Prime Minister said.

“It is not just an industry that serves Britain but Europe too. And we are not going to make Europe a fairer place if large parts of our financial services relocate to Shanghai or Singapore.”

Germany’s Finance Minister Wolfgang Schauble joined the Prime Minister in his protests, hinting that the region’s biggest economy could be backing away from the plan. Speaking at the same conference, he said: “We are just beginning this discussion. It is not a major concern.”

TMF Group has a range of financial transaction services, as well as legal professionals stationed across Europe who can help companies implicated by  the potential new tax. We will also be keeping track of developments in regards to the FTT, and documenting movements via our news feed and press coverage.

 
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