On 14 February 2013 the European Commission published its detailed proposal for a radical and wide ranging Financial Transaction Tax (FTT). The scope of the proposed FTT would be broad and its impact on the City would be significant. The European Commission wanted the tax to take effect on 1 January 2014.
Our report - in the form of a Q and A - explains how the proposed FTT would operate and explores the implications of the tax. You can read our report here.
Over the last 3 months, the case against the FTT has been building. The UK government has gone as far as launching proceedings challenging the proposals before the ECJ. The Governor of the Bank of England Sir Mervyn King said “here in Europe, I can't find anyone in the central banking community who thinks it's a good idea”.
Some politicians of the 11 FTT Zone countries now appear to be proposing a more conciliatory approach. For example, Germany’s finance minister Wolfgang Schäuble recently suggested that the plans for the FTT will take a long time to be finalised.