Group of 20 finance ministers do not support a tax on financial transactions proposed by the EU, UK Chancellor George Osborne said. The British government has argued that the tax would have to be applied globally to work. "I have also noted with concern the significant negative impact on growth and jobs that the [European Commission's] analysis sets out," Osborne wrote in a letter. "For these reasons, the UK government does not support" the proposal.
Shanghai is striving to become a global financial hub. Part of that effort includes luring about 90,000 professionals, increasing its financial workforce by about 40%. Shanghai is also working to bring in the biggest financial powerhouses in the world. However, China's high tax rates could hinder the city's efforts.
Charles Dallara, managing director of the Institute of International Finance, said in a letter to Group of 20 leaders that there is a "clear need" to restore investor confidence in European banks. However, he argued that the EU's recapitalisation plan for lenders has "serious problems". The plan will make it more difficult for some countries to borrow and will hinder economic growth, Dallara wrote.
A panel of industry experts at the Sibos conference said Basel III rules, which are intended to strengthen the financial system, are hurting global trade. The experts said the regulations are driving up financing costs and could lead some exporters to abandon their plans.