The European Banking Federation has repeated its members’ strong opposition to the plans of a group of 11 EU member states and the European Commission to introduce a tax on financial transactions (FTT) under the EU’s enhanced cooperation procedure.

They were reacting to informal discussions among EU finance ministers in Luxembourg last Saturday.

The European Banking Federation brings together 32 national banking associations that collectively represent some 4,500 banks in Europe. It said an FTT puts at risk economic growth in Europe and would harm Europe’s financial independence in the global financial services markets.

“The introduction of an FTT sends a confusing message to people and markets in a time where Europe urgently needs more initiatives for growth like the Capital Markets Union,” said Wim Mijs, chief executive of the EBF.

“CMU is about boosting liquidity and financing companies. All these benefits may evaporate as soon as the EU begins to tax financial transactions.”

The EBF, together with other industry associations, earlier this year wrote to EU finance ministers and the European Commission urging them to take note of the overwhelming evidence against the merits of an FTT and called on them to drop the project in order to safeguard economic growth and employment.

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