Brussels, 12/11/2012 (Agence Europe) - European employers fear negative consequences for the single market from the introduction of a financial transactions tax (FTT) by 11 member states using the enhanced cooperation mechanism (see EUROPE 10711). In a letter to the Cypriot Presidency on 8 November, ahead of discussion at the ECOFIN Council, BusinessEurope says that before it gives its opinion on the matter, the Council of Ministers should ensure it has a full impact assessment both for member states (those introducing the tax and those not) and the single market as a whole.
BusinessEurope says that although businesses back the idea of strengthening regulations to deal with shortcomings in the financial sector (like the CRD IV legislation on capital requirements for banks), they believe the FTT would do nothing to make banks more stable and secure but would simply increase the already onerous regulatory burden. Applying to only a portion of the EU member states, it would impact negatively on the others and disturb the smooth functioning of the single market for financial services by making market conditions for inter-country trade more complex and varied. For these reasons, BusinessEurope says that before authoring launch of the tax, ministers must carefully examine its scope of application and exemptions that could restrict the negative impact on growth and jobs. (FG/transl.fl)