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Nine European trade associations have co-signed a letter addressed to the Irish Minister of Finance and President of the ECOFIN Mr Noonan to warn about the negative effects of the proposed financial transaction tax (FTT) on financial activities that are essential to the functioning of financial markets and our economy as a whole, such as government financing, risk hedging and corporate access to finance.
The undersigning organisations believe that the negative consequences of the tax will be proportionate to its huge effective magnitude and will dis-incentivise on-exchange trading and clearing, contrary to regulatory reforms implementing the G20 objectives whilst the real economy will mostly have to bear the additional costs arising from the FTT.
