AFME voices concerns over Europe’s Financial Transaction Tax
The Association for Financial Markets in Europe (AFME), which groups the biggest financial institutions, is strongly opposing the introduction of a Financial Transaction Tax in the European Union, a plan backed by 10 eurozone countries which will tax transactions made by financial institutions.
“FTT is regrettable and likely to serve as another brake on economic growth. In light of the negative impact that a financial transaction tax would have on jobs and growth in Europe, it is disappointing that the proposal is still being considered,” AFME said in a statement.
According to independent economic analysis, the new levy will have a negative impact on growth for jobs.
“The impact of the tax on the real economy could be severe, as many financial transactions are made on behalf of business that would bear the extra cost. Given the negative impact on growth, it could even reduce overall tax revenues in net terms,” AFME said.
France, Germany, Austria, Belgium, Greece, Italy, Portugal, Slovakia, Slovenia and Spain have all agreed to push ahead with the introduction of single tax which would bring €57bnin annual revenue, according to estimates by the EU Commission.