June 27, 2011

The EU wants kill the financial industry as well

After the member states governments spent billions trying to keep the interbank lending market going the EU is going to kill it. They want to place a tax on all financial transactions which will make a large chunk of all low margin trades, like the millions of daily trades that keep the interbank mark going, unprofitable. The prospect of a profitable industry brought to its knees by government taxation is making the usual suspects on the left mastibate itself into a frenzy.

Of course the EU does not really care about any of the lefty wibble spouted by the Transaction Tax’s usual supporters, they are just after the money. The EU has been desperate to get more taxes under its direct control and so increase its direct income. It wants this to make it less reliant on the member states. They are just jumping on the bandwagon because it is going in a direction they like, the direction of higher taxes. The fact that this tax is not aimed at destroying the EU financial industry won’t mean that that will not be the result. I’m sure that estate agents on Bern will be rubbing their hands with glee, if this law goes into practice a very large chunk of the European financial industry is going to up sticks and move to Switzerland.


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