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Cameron slams EU financial transaction tax

David Cameron Speaking 480

Prime minister David Cameron has attacked the European Union’s proposed financial transaction tax, saying the plan is “not a good idea”.

Speaking at the Global Investment Conference 2013 in London today, Cameron argued that the FTT could damage the health of the UK’s financial sector and harm Europe’s competitiveness across the globe.

The prime minister said the levy will not work unless it was “applied globally”, according to the BBC, and suggested it could push financial businesses to move outside of the EU.

The European Commission has unveiled detailed plans to apply at tax of 0.01 per cent for financial transactions related to derivative contracts and 0.1 per cent for other financial transactions. This tax would also apply to some transactions undertaken in countries that have not signed up to the FTT.

European business lobbying group BusinessEurope, which counts the CBI among its members, recently sent an open letter to European Union finance ministers attacking the proposed FTT.

The letter says the tax would “make investors both here and across the globe question whether policymakers are really serious about putting in place a competitive business environment”, Sky News reports.

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