Europe Rejects Britain’s ‘Tobin’ Tax Appeal

Email this

Yet again the European Court of Justice (ECJ) has defied the will of the British people by throwing out the UK’s challenge to the proposed Financial Transaction Tax (FTT) and calling into question the survival of the City of London. Boris Johnson, the Mayor of London attacked this latest EU tax as “barmy”.  He warned this recent defeat in the EU courts raised “serious questions” over the government’s ability to defend the City’s financial sector from damaging European regulation. He said “This judgement beggars belief. With London’s economy buoyant once more and driving the national recovery, the last thing that we need is a barmy tax that will stamp on growth.” He went on to say “This ruling also raises serious questions about how the UK can safeguard its financial services sector given that we are not in the euro.”

Although Britain is not one of the 11 member states adopting the tax at the moment, the levy will affect British banks and firms’ transactions with the banks of those that do. Designed to discourage speculative trading, the tax would see a levy imposed on transactions involving shares, currency and bonds.

Some EU enthusiasts will say we are deeply interconnected with Europe and what goes on in the Eurozone, therefore these taxes will protect us from reckless speculation in the continent. Yet as part of a global economy, we are hugely affected by what goes on in the Asian and American markets as well, and thankfully Brussels is not able to impose taxes on China or the US. Why should Britain be inflicted by the folly of Brussels deciding tax policy for us?

Even if we put aside the relentless creep of EU powers over our laws and taxation (among other things), the way that this tax is being forced through the EU parliament is deeply troubling. Not only are 11 of the 28 states forcing taxation onto the other 17 states that are also not in favour of it, they are ignoring the economic evidence showing how ineffective this tax would be.

Some EU enthusiasts will say we are deeply interconnected with Europe and what goes on in the Eurozone, therefore these taxes will protect us from reckless speculation in the continent. Yet as part of a global economy, we are hugely affected by what goes on in the Asian and American markets as well, and thankfully Brussels is not able to impose taxes on China or the US. Why should Britain be inflicted by the folly of Brussels deciding tax policy for us?

Alan Murad, Acting Campaign Manager

Email this
%d bloggers like this: