Europe's ruling on a financial transaction tax is a kick in the teeth to the City. It demonstrates Cameron's argument that the UK government can negotiate a better deal for British business from within the EU as a fraud and a farce, writes UKIP Leader Nigel Farage (Telegraph)
• So the financial interests of the British people are kicked in the teeth by the European Court of Justice and still, David Cameron wants to keep us in for more EU rough treatment.
Even in European terms, the Financial Transaction Tax is a bad idea because it will help to drive money and expertise offshore to Switzerland and Hong Kong. The FTT is a legislative club (in both the cudgel and group sense) which the eleven EU states involved and the European Commission wish to beat the City of London over the head. It is estimated that it will cost the City 4.4 billion pounds.
In January, the EU court also rejected a UK attempt to prevent Brussels banning short selling. Just how many times does the British financial industry have to be beaten-up by the ECJ before Cameron will shout - as I have - enough is enough?
This FTT judgment shows that the British Government cannot act to protect the UK’s biggest interest. It is impotent and at the mercy of an antagonistic and federalist court – the ECJ.
It demonstrates Cameron's argument that the UK government can negotiate a better deal for British business from within the EU as a fraud and a farce.
The only way to protect the UK financial interest is to withdraw from the tax-hungry EU and stop giving Brussels power over us.
The European Commission wants to tax financial institutions in the UK even though they are not within the FTT zone.
Not only is it unfair, and probably illegal under international tax law, but above all, it is a deliberate assault on the City of London which will be squeezed in a disproportionate manner compared to other countries. The City is a global financial capital after all.
The Commission proposal is clearly targeted to tax financial services in the City even though the UK government does not want to be part of the participating member states.
The UK government will have no say on this tax system but businesses within its borders will have burdened by this FTT. This is can only lead to British resentment.
The FTT tax rate will no doubt be ratcheted up over the coming years to squeeze more money from the financial services industry. It is probably the end of the City’s tolerance of the EU and the time when any confidence in Cameron’s ability or willingness to protect our interests evaporates for good.