European Financial Transaction Tax condemned by Emma McClarkin MEP

East Midlands Conservative MEP Emma McClarkin has this week condemned a Financial Transaction Tax as bad for the whole of Europe – not just bad for Britain – saying that it was time EU politicians were honest about the harm a tax would bring to Europe’s savers, economy and financial stability.

The European Commission wants to charge a tax on certain financial transactions, known as the European Financial Transaction Tax (FTT). However the UK has the vast majority of financial institutions, and British companies would bear most of the burden of the tax, making them less competitive in the global financial economy.

Additionally, if Europe adopted a FTT but the rest of the world didn’t, there would be nothing to stop financial institutions moving out of the UK altogether and relocating to other parts of the world such as America or Asia, which don’t have such a tax. This would be hit the UK economy still further.

Miss McClarkin said: “The Financial Transaction Tax will increase insurance, damage pensions and create job losses. It will have a disproportionate effect on the UK and our financial services and will not result in more growth. In fact it will make Europe more uncompetitive and push business outside the EU. We as Conservatives will continue to fight against it along with the Prime Minister.”

Conservatives opposed the FTT proposal but it was approved by a substantial majority of MEPs. The Prime Minister David Cameron, however, has said the UK will veto the proposal at European Council and several other member states are expected to do the same.