Financial Transaction Taxes

You can always rely on the European Commission to come up with daft ideas...
You can always rely on the European Commission to come up with daft ideas, but José Manuel Barrosso, the Commission’s President, has excelled himself. His proposal for a Tobin tax is the worst sort of populist politics. He must know: (1) that it will only generate substantial tax revenue if the UK is included; (2) that with UK involvement, the UK would effectively be propping up the Eurozone single-handed; except (4) that it would ruin the EU’s financial markets (which are largely in the UK) - witness the example of Sweden where such a tax led to nearly all financial transactions moving to the UK; (5) that the UK would veto the proposal; and (6) that the Commission’s own figures show that it would severely hit economic growth.

We may hate bankers but this is like asking every EU citizen to become a suicide bomber. Who cares if it destroys us? We’ll take the bankers with us. Except, of course, that the bankers will just move to Switzerland or the US or China.
blog comments powered by Disqus