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?
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