RAPID RESPONSES

Crippled by costs

I’m glad to see that Ernst and Young has now revealed the true cost that an EU financial transaction tax (FTT) would impose on the whole of the European Union and, in particular, the City of London [Tobin Tax could cost EU billions, Monday].

David Cameron would certainly be right to veto the FTT if Germany really does try to impose this costly levy on the whole of the EU. However, given the financial realities, I doubt that Chancellor Angela Merkel will even be able to persuade all her Eurozone partners to sign up to the proposed tax; it would have a similar crippling effect on the financial services industries in Malta and Luxembourg as it would here in the UK.

Marina Yannakoudakis, Conservative member of the European Parliament for London