They argue that none of the models under discussion will succeed in avoiding adverse effects on growth, employment and provision for old age or in averting a fragmentation of the European financial and investment market. If the European Commission’s declared objective is to strengthen growth and employment in Europe, the idea of a financial transaction tax now needs to be abandoned.
The associations anticipate a negative impact on the real economy as a result, among other things, of the tax burden on hedging transactions in areas such as foreign trade finance. This would make businesses in Europe less competitive. The tax would also have an adverse effect on corporate finance since banks’ funding costs would significantly increase.
Find the entire press release on www.bankenverband.de.