Warning against negative impact of FTT

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savanasquare In a letter sent last month, the European Banking Federation has called on EU Finance Ministers not to endorse the implementation of a Financial Transaction Tax (FTT).

Together with another eight major associations[1], representing various sectors of the financial services industry, the Federation reiterated concerns over the introduction of the proposed Tax under the enhanced cooperation procedure involving 11 Member States.

“While we fully recognise the objective of generating new sources of revenue for public finances,” explained Guido Ravoet, Chief Executive of the EBF, “we can only regret the negative consequences the FTT – as it is currently foreseen – would have on competition among financial services actors in Europe, merely on the basis of their location in or connection to the FTT zone.”

The signatories of the letter, urged ECOFIN Ministers to reconsider the Commission’s proposal in light of the detrimental effects that will accrue from its imposition. A similar letter was submitted by BusinessEurope. In the meantime, more Member States are expressing their dissatisfaction with the proposed FTT.

 

[1] The Association of International Life Offices (AILO), the European Association of Cooperative Banks (EACB), the European Fund and Asset Management Association (EFAMA), the European Repo Council (ERC), the European Savings Banks Group (ESBG), the Fédération Européenne des Conseils et Intermédiaires Financiers (FECIF), the Federation of European Securities Exchanges (FESE), and the International Capital Market Association (ICMA)