ECB sounds note of caution on financial transaction tax

Lobbying against the EU’s Robin Hood-style financial transaction tax has been ramped up following the apparent intervention of the European Central Bank.

Eleven countries have signed up to the taxbut others who have not, including Ireland, are becoming concerned as it will affect trades in bonds, shares and derivatives that have any connection with the European Union.

While Ireland, and many of the big global trading centres, including the City of London, tax share sales with a stamp duty, it is confined to one part of the sale and derivatives are not taxed.