Financial Transaction Tax Backed By Germany

October 30, 2013 Share Print 0

The path to implementing a tax on financial transactions (known as the FTT) was never going to be smooth. This week’s announcement that the expected coalition between Christian Democrats and the Social Democrats in Germany will prioritise the tax’s implementation, is a sign that the proposal remains on track. But any measure that taxes or regulates financial markets and banks will always meet concerted opposition.

In recent weeks, this has been growing from some quarters. The latest criticism, from France’s central bank governor Christian Noyer, was splashed on the front page of Monday’s Financial Times: “France central bank chief says Robin Hood tax is ‘enormous risk'” ran the headline. As this extremely small tax is to be implemented by 11 European countries, it is appropriate to ask: an enormous risk for whom?

via theguardian.com

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.