Boris slams European Tobin tax
BORIS Johnson has launched an all-out attack on nine EU states after they called for a new financial transactions tax to be introduced urgently.
The mayor promised to fight the proposal, which would cause “serious damage” to London’s economy.
Addressing the countries Johnson declared: “Non, nein, no! I will not allow jobs, growth and the livelihoods of Londoners to be jeopardised by an unholy alliance of European states who view financial services as an easy target, despite the fact that it is crucial to the economic recovery of its members.”
Last Tuesday the finance ministers of France, Germany, Austria, Belgium, Finland, Greece, Spain, Portugal and Italy wrote to Denmark – holders of the EU Presidency – to petition for the fast-track introduction of a 0.1 per cent tax on stocks and 0.01 per cent on derivatives trading.
Johnson said: “Do they not understand that our crucial wealth providers will be on the first flight out to the US and Far East if their ill thought out plans succeed?”
But Labour mayoral candidate Ken Livingstone argued: “Boris Johnson spends more time defending the interests of the wealthiest bankers than fighting for ordinary Londoners.
“Unemployment in the capital is rocketing and Londoners are feeling squeezed, yet the Mayor refuses to call on the banks to do more to fulfil their obligations to the rest of society.”
Around 330,000 Londoners are directly employed by the financial services industry and the mayor fears that additional taxes could drive financial workers overseas.
The European Commission’s own impact assessment on the proposed levy suggests that it would reduce EU GDP by 0.5 per cent.
Johnson’s announcement came as a poll gave the mayor a two point lead in the mayoral election race.
The YouGov/Evening Standard research placed Johnson ahead by 51 per cent to Ken Livingstone’s 49 per cent when voters were forced to make a straight choice between the two leading candidates.
Livingstone, the Labour mayoral candidate, has been a long-term proponent of the transaction tax.
He told City A.M.: “Boris Johnson spends more time defending the interests of the wealthiest bankers than fighting for a better deal for ordinary Londoners.”
“Under Boris Johnson unemployment in the capital is rocketing and Londoners are feeling squeezed, yet the Mayor refuses to call on the banks to do more to fulfil their obligations to the rest of society.”
In an open letter the nine countries said the new tax was “necessary at community level” in order to “ensure a fair contribution from the financial sector to the cost of the financial crisis” and “improve the regulation of financial markets”.
Opposition to the proposed tax is particularly strong in London due to the perceived threat to the City’s position as a global financial centre.