CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Osborne Renews Attack On European FTT

Osborne Renews Attack On European FTT

by Robert Lee,, London

20 January 2014

UK Chancellor George Osborne has warned that a European financial transaction tax (FTT) would be expensive and destroy jobs.

Speaking this week at the Open Europe Conference, Osborne contended there are not, in fact, "two debates" on the European Union (EU), but one, which encompasses questions of sovereignty, democracy, accountability, and economics. He questioned the use of the European Commission's "enhanced cooperation" mechanism for the introduction of a Tobin tax, asking "why don't we think about using it for job creating measures that others oppose?"

The Commission's FTT proposals have been "contradicted by its own original impact assessment which showed that the policy would reduce EU GDP," Osborne added.

The UK is challenging the initiative in the European Court of Justice (ECJ), something it does not "do lightly." This is not "unthinkingly anti-European," Osborne stressed, but an attempt to "enforce European principles of non-discrimination and adherence to European law."

Osborne is also concerned that the Lisbon Treaty will, by 2016, have supplied the Eurogroup with "sufficient votes to pass any financial services legislation for the whole of the EU." He described the UK as "Europe's great global financial center," and warned that damaging it would "be very bad for the whole of Europe too."

The Chancellor condemned the European Central Bank for attempting to force clearing houses with large euro-based transactions to move to the Eurozone. The UK will be taking the Bank to the ECJ over the matter, with Osborne querying how it is possible to claim the existence of a single market "if we say that certain businesses can only locate in certain member states."

TAGS: court | tax | economics | business | European Commission | law | financial services | tobin tax | United Kingdom | legislation | tax rates | tax reform | European Union (EU) | services | Europe

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »