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Robin Hood Tax

ECB Examines Impact of Financial Transactions Tax

The European Central Bank is examining the potential impact of Europe's proposed financial transactions tax on money markets, the bank's top economist Peter Praet said Thursday, after top ECB officials raised concerns that the tax could have adverse effects on still-weak financial markets."We are looking at the potential consequences of FTT on money markets, [which] are key to transmission of our monetary policy," Mr. Praet, a member of the ECB's executive board, said at a meeting of business leaders in Brussels.Eleven European countries are pressing ahead with plans to introduce the financial transactions tax, which aims to discourage speculative trading by charging levies of 0.1% on trades of shares and bonds and 0.01% on derivatives.The rules aim to prevent firms from simply shifting trading abroad by applying the tax not only to transactions that take place within the 11 countries, but also to trades of shares or bonds issued by companies located in those countries.Jens Weidmann, h...

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