Registered: Nov 2005
01-15-12 12:12 AM
WOW! If the Deustche Boerse takeover of NYSE goes go through, all NYSE trades will pay any German Financial Transaction Tax.
In other words, NYSE would be DEAD
KIEL, Germany (Dow Jones)--Germany's Chancellor Angela Merkel Saturday found backing from her party to introduce a financial transaction tax within the euro zone if it is impossible to launch it in the European Union as a whole.
The plan was agreed to at a meeting of her conservative Christian Democratic Union here in northern Germany.
"We will aim for a quick introduction of a financial transaction tax," said the so-called Kiel Declaration, which outlines the party's road map for the rest of the year. "The tax should be shaped in a way that the interest of Germany's financial centers will be maintained."
The introduction in the euro zone alone should be a first step to be followed by efforts to get the EU as a whole and also the U.S. later on board, the declaration said.
The plan is that the tax must be paid once one of the parties involved in a financial transaction is based in a country where the tax will be applied. Merkel told reporters it is now important to see whether there is the chance that a proposal by the European Commission will find backing on the level of European finance ministers or the heads of EU leaders.
But Merkel's plan was also criticized within her own party over fears that Germany's main financial center, Frankfurt, will see capital fleeing to the City of London. The plan has also been opposed by the Free Democratic Party junior coalition partner.
Lawmaker Michael Fuchs of Merkel's CDU said at the party conference that introducing such a tax only on continental Europe and not in the U.K. would be wrong because this could be a boosting program for the City of London.
"It would be necessary for the Brits to join in," Fuchs told reporters. "The Englishmen must display European solidarity because otherwise they would get into a splendid isolation, which they should prevent."
--By Andrea Thomas, Dow Jones Newswires; 49-30-2888-4126, firstname.lastname@example.org