Financial transaction tax serious threat

A TAX on all financial transactions through banks and financial institutions, being pushed by France and Germany, will put Ireland in a difficult position politically and could have serious repercussions for the International Financial Services Centre (IFSC).

Finance Minister Michael Noonan has been adamant that any such tax must apply to the entire EU, but a number of countries are saying that if Britain vetoes this proposal, then they will push for it to be applied in the eurozone.

Ireland is a major centre for the fund industry, which at the end of last year had an estimated €1.87 trillionunder administration.