Brussels, 28/10/2013 (Agence Europe) - Christian Noyer, the governor of Bank of France and member of the European Central Bank's Governing Council, said in an interview with the Financial Times on Monday 28 October that the European Commission's planned financial transactions tax (FTT) to be introduced in 11 EU member states (including France) under “enhanced cooperation” was a huge risk for the countries that would be levying it.
He said the tax would lead to a rise in the cost of capital for the countries and companies in question, a reduction in liquidity on the markets and substantial job losses, especially in the financial sector. He said he didn't think the French government had ever planned to do anything likely to lead to the destruction of entire swathes of the French financial industry or to trigger massive relocations and damage the entire economy, and he called for a full overhaul of the Commission's plans. The criticisms follow others made by the financial industry (see EUROPE 10823) and come after French economy minister Pierre Moscovici said in July that the Commission's plans went too far. Despite the criticisms, the Commission has made the FTT one of its priorities for its work programme for 2014. (FG/transl.fl)