Analysis: Financial-transaction tax is problematic

04/27/2012 | Economist (free content), The

The EU's proposed financial-transaction tax has been moving forward and could gather momentum during the French presidential election, because both major candidates are for it. However, the tax faces challenges and likely would have unintended consequences, such as driving trading out of countries that implement it. European Central Bank President Mario Draghi recently reiterated this point before the European Parliament. "We want them to come back," Draghi said. "One wonders if an FTT is the best way to attract them back to euro area."

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Economist (free content), The

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