http://www.guardian.co.uk/business/2011/nov/17/cameron-two-speed-europe-concessions "Cameron will make clear that Britain is opposed to German calls, supported by France, for the introduction of a Financial Transactions Tax (FTT). Volker Kauder, the parliamentary leader of Merkel's Christian Democratic Union, criticised Britain for opposing the tax. Britain can veto the introduction of the FTT because taxation matters are decided by unanimity in the EU. But the French and Germans could introduce the measure in the eurozone under a measure in the Lisbon treaty known as "enhanced co-operation". So the thought that unless the whole of Europe are in appears to be a load of crap. Once DB closes on Euronext/LIFFE then I suppose they are included in the FTT too.
If they got any sense they should headquarter and list the joint company in London as part of the merger. The Germans government seems to want to remove all short term speculative trading from the markets.
You should really call them up and suggest this. I bet with all the gloom that must circulating that office right now they could do with a good laugh.
If this tax is pushed through, what would be the normal period for it to move through parliament? 18 months? I need to make hay while the sun shines. Runningbear
There were headlines regarding the FTT from the German fiannce minister yesterday on Bloomberg,clearly in favour. At first I thought this would just disappear,now i'm thinking this will really happen,the Germans and French seem determined to push this through and the public will likely support this given their lack of understanding of any implications.
They pushing hard, looks highly likely the tax is coming to Germany.. even if the UK vetos across the EU, France and Germany seem to want to implement this tax across any EU countries that are willing.. Will this be the end of German derivatives day trading as we know it?... the end of daytrading in the Bund, Bobl and Shatz and DAX? These markets will continue to trade even with the tax in place, but volumes will be about 80 to 90% down and spreads will widen. Day trading strategies will be rendered unprofitable by the 0.01% tax on each side.
A number of firms including hedge funds, have already drawn up logistical plans to leave Germany if they pass the transaction tax. Then what is Germany going to do with the TOTAL loss of all that tax revenue?......