Great article from the economist:
http://www.economist.com/blogs/charlemagne/2011/09/financial-transaction-tax-euro-area
http://www.economist.com/blogs/charlemagne/2011/09/financial-transaction-tax-euro-area
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
13:13 MARKET COMMENTARY
Chancellor Merkel says wants financial transaction tax, at best worldwide, but at least in Europe
Source: RTRS
17 September 2011 - 20H01
Eurozone-only transaction tax possible: Germany
AFP - A proposed tax on financial transactions could be introduced in the eurozone alone, German Finance Minister Wolfgang Schaeuble said in an interview to be published Sunday.
"The ban on 'naked' short selling was only the beginning of the measures we are taking," Schaeuble told Bild am Sonntag.
"Before the end of the autumn we are going to create a tax on financial transactions. If necessary, I'm sure, just in the eurozone," he added.
German Chancellor Angela Merkel and French President Nicolas Sarkozy signalled their support for the measure during a summit last month to discuss the euro debt crisis.
According to the proposals submitted to the European Commission, the two leaders want at least a Europe-wide tax, but Britain and Sweden -- EU members but not part of the eurozone -- have made their opposition known.
http://www.france24.com/en/20110917-eurozone-only-transaction-tax-possible-germany
Chancellor Merkel says wants financial transaction tax, at best worldwide, but at least in Europe
Source: RTRS
17 September 2011 - 20H01
Eurozone-only transaction tax possible: Germany
AFP - A proposed tax on financial transactions could be introduced in the eurozone alone, German Finance Minister Wolfgang Schaeuble said in an interview to be published Sunday.
"The ban on 'naked' short selling was only the beginning of the measures we are taking," Schaeuble told Bild am Sonntag.
"Before the end of the autumn we are going to create a tax on financial transactions. If necessary, I'm sure, just in the eurozone," he added.
German Chancellor Angela Merkel and French President Nicolas Sarkozy signalled their support for the measure during a summit last month to discuss the euro debt crisis.
According to the proposals submitted to the European Commission, the two leaders want at least a Europe-wide tax, but Britain and Sweden -- EU members but not part of the eurozone -- have made their opposition known.
http://www.france24.com/en/20110917-eurozone-only-transaction-tax-possible-germany
januson,
If volume plummets and bid/ask spreads get very large, that will be bad for traders no matter how much volatility increases.
Are there many traders in Denmark?
Best regards,
Tom
If volume plummets and bid/ask spreads get very large, that will be bad for traders no matter how much volatility increases.
Are there many traders in Denmark?
Best regards,
Tom
Quote from januson:
I live in Denmark and our newly elected government Social Democrats: http://s-dialog.dk/default.aspx?site=english&
has been talking a lot about the financial transaction tax and the traders here i Denmark are angry and frustrated...just as you are
However.... I was thinking...
Would this tax be such a big deal of the swings just was proportional bigger?
What if the introduction of FTT would have the exactly opposite effect?
So instead of an i.e. equity with 2% range just would adapt into a 2.5%. Everyone would still be happy right?
Just posting this for some color on the Denmark situation:
Osborne increasingly isolated on Financial Transactions Tax:
http://www.leftfootforward.org/2011/09/george-osborne-isolated-financial-transactions-tax/
"Osborneâs approach was widely seen as a bargaining position, designed to ensure whatever deal is done is not too damaging to the London financial interests he is so keen to represent."
"And Osborne is outnumbered. Last week, Denmark elected a new government with a manifesto commitment to support FTTs unilaterally (so they will certainly drop the previous Danish governmentâs opposition to a European measure) â leaving the Czechs and Swedes as his only major allies."
"The Danes have joined the French and Germans who have submitted their own detailed proposal to the Commission, along with the Austrians, Belgians, Greeks and Spaniards who have supported the measure for some time. The Netherlands government is keen to insist on the UK signing up rather than adopting the fall-back of a eurozone tax, so the British government will come under substantial lobbying over the next few weeks. Hence Osborneâs robust initial position."
-Guru
Osborne increasingly isolated on Financial Transactions Tax:
http://www.leftfootforward.org/2011/09/george-osborne-isolated-financial-transactions-tax/
"Osborneâs approach was widely seen as a bargaining position, designed to ensure whatever deal is done is not too damaging to the London financial interests he is so keen to represent."
"And Osborne is outnumbered. Last week, Denmark elected a new government with a manifesto commitment to support FTTs unilaterally (so they will certainly drop the previous Danish governmentâs opposition to a European measure) â leaving the Czechs and Swedes as his only major allies."
"The Danes have joined the French and Germans who have submitted their own detailed proposal to the Commission, along with the Austrians, Belgians, Greeks and Spaniards who have supported the measure for some time. The Netherlands government is keen to insist on the UK signing up rather than adopting the fall-back of a eurozone tax, so the British government will come under substantial lobbying over the next few weeks. Hence Osborneâs robust initial position."
-Guru
Financial Transaction Tax Should Replace Bank Levy, DSGV Says:
http://www.bloomberg.com/news/2011-...n-tax-should-replace-bank-levy-dsgv-says.html
"A financial transaction tax should replace bank levies in Europe and not be introduced in addition, Heinrich Haasis, the head of Germanyâs DSGV savings banks association said today in an e-mailed statement."
"Haasis said a financial transaction tax could lead to greater stability in the financial markets."
I have to laugh at his quote about an ftt adding greater stability in the financial markets. You would think the head of a banking association would know better. But I guess he's just looking out for the banks' interest as doing away with the current banking levies and replacing those with an ftt that they can pass along is good for them financially (LOL).
-Guru
http://www.bloomberg.com/news/2011-...n-tax-should-replace-bank-levy-dsgv-says.html
"A financial transaction tax should replace bank levies in Europe and not be introduced in addition, Heinrich Haasis, the head of Germanyâs DSGV savings banks association said today in an e-mailed statement."
"Haasis said a financial transaction tax could lead to greater stability in the financial markets."
I have to laugh at his quote about an ftt adding greater stability in the financial markets. You would think the head of a banking association would know better. But I guess he's just looking out for the banks' interest as doing away with the current banking levies and replacing those with an ftt that they can pass along is good for them financially (LOL).
-Guru
Financial transaction tax serious threat:
http://www.irishexaminer.com/business/financial-transaction-tax-serious-threat-167949.html
A TAX on all financial transactions through banks and financial institutions, being pushed by France and Germany, will put Ireland in a difficult position politically and could have serious repercussions for the International Financial Services Centre (IFSC).
Ireland is a major centre for the fund industry, which at the end of last year had an estimated â¬1.87 trillionunder administration.
It fears that such a tax would give competitors such as the British Virgin Islands and the Caymans as well as Britain and non-eurozone member states an advantage.
The Irish authorities fear that having the FTT in the eurozone and not in Britain and the other non-euro countries would be to Irelandâs detriment as a financial centre as it could have the effect of pushing such institutions to Britain. Many believe that Britain is hoping that by vetoing the idea, it will be to their advantage.
Ireland has traditionally sided with Britain on this matter but will now find itself under pressure to support the proposal or at least not to vote against such a measure, especially following the decision to cut the interest rate on the â¬67.5 billion rescue loan saving the country over â¬1bn a year.
http://www.irishexaminer.com/business/financial-transaction-tax-serious-threat-167949.html
A TAX on all financial transactions through banks and financial institutions, being pushed by France and Germany, will put Ireland in a difficult position politically and could have serious repercussions for the International Financial Services Centre (IFSC).
Ireland is a major centre for the fund industry, which at the end of last year had an estimated â¬1.87 trillionunder administration.
It fears that such a tax would give competitors such as the British Virgin Islands and the Caymans as well as Britain and non-eurozone member states an advantage.
The Irish authorities fear that having the FTT in the eurozone and not in Britain and the other non-euro countries would be to Irelandâs detriment as a financial centre as it could have the effect of pushing such institutions to Britain. Many believe that Britain is hoping that by vetoing the idea, it will be to their advantage.
Ireland has traditionally sided with Britain on this matter but will now find itself under pressure to support the proposal or at least not to vote against such a measure, especially following the decision to cut the interest rate on the â¬67.5 billion rescue loan saving the country over â¬1bn a year.
Any firm that chooses to avoid the FTT would of course be unable to borrow funds from any central bank in the future if they get into financial trouble.
According to some articles I posted earlier Denmark is supposedly no longer opposed to a Euro ftt as they have recently elected a pro ftt goverment. Also another article I posted seems to indicate that Ireland would have a hard time voting against an Euro ftt. I really find it hard to believe regarding Ireland as they have said they would only go along if the UK does (which IMHO isn't going to happen).
I'm really not sure where the EU ftt tax currently stands. I guess there's an outside chance it could happen in the Eurozone but even thats still unlikely (IMHO). If it did happen in the Eurozone the results would be less than stellar and would I'm sure that would definately scare the rest of the region (and world) against signing up for it.
All IMHO,
--Guru