Tuesday, 1 November 2011

Swedish finance minister says: "Noooooo!"

According to the BBC:

A European financial transaction tax is unlikely to raise the sums of money projected as it would encourage firms to move overseas, Sweden's finance minister has told the BBC.

Anders Borg said Sweden abandoned its own transaction tax after most trading companies left the country.

The tax "had a very detrimental impact on our financial markets", he said.

If the European Union introduces the tax, firms could simply move to New York or Asia, Mr Borg said.

In theory the EU's version of Tobin will raise £50 billion of which £40 billion will come out of London. In practice the tax will raise very little but will destroy London's capital markets businesses. In Sweden they raised 3% of what they were expcting and quickly gave up but not before their capital markets transactions had migrated to ... London.

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