When the EU introduces the tax how will that help the City retain its position?
I'm obviously missing something here.
The UK is vetoing the tax, it will NOT be introduced into the UK.
Hence, financial business will remain in London, and more than likely grow as some European operations re-locate to get around the tax.
A European financial transaction tax is unlikely to raise the sums of money projected as it would encourage firms to move overseas, Sweden's finance minister has told the BBC.
Anders Borg said Sweden abandoned its own transaction tax after most trading companies left the country.
The tax "had a very detrimental impact on our financial markets", he said.
If the European Union introduces the tax, firms could simply move to New York or Asia, Mr Borg said.
Sweden introduced a transaction tax on financial firms in the 1980s.
"Between 90%-99% of traders in bonds, equities and derivatives moved out of Stockholm to London," Mr Borg said.
