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Regional adoption of a financial transaction tax would be catastrophic

In the latest issue of financial-i magazine, columnist John Gubert lifts the lid on the proposed financial transaction tax, which despite resistance from the UK, is still being considered in parts of Europe.

In the January 2012 issue of financial-i, columnist John Gubert says the financial transaction tax proposed by Germany and France on equity, bonds and some derivatives transactions, will not work unless it is applied globally. UK Prime Minister David Cameron and the US are less in favour of a transaction tax. The UK maintains it already imposes stamp duty on some transactions and those countries with a substantial financial sector like London appear to be more opposed to a tax for fear it could destroy the UK's reputation as a global financial center.

John maintains that the results of regional adoption of the tax (in other words if France or Germany or the eurozone just implemented it) would be "catastrophic" for governments, corporate issuers, investors and employment.

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