Study backs financial transaction tax

Ireland’s case for refusing to support a financial transactions tax unless it was global has been undermined by a study from two eminent economists presented to the European Parliament.

It argued that many of the world’s largest and fastest growing countries already have similar taxes in place and it has not caused them to lose business. They also say the money raised would help grow the economy.

The Government argues that unless the tax, proposed by the European Commission and supported by Germany and France, is global, it would result in Ireland losing business to the City of London financial centre.