Bankers Criticize Franco-German Plans for EU Transaction Tax

Banks criticized Franco-German plans for a tax on financial transactions, saying they will jeopardize economic growth and distort markets, as the British, Dutch and Swedish governments distanced themselves from the proposals.

“The financial-services industry should not be seen as an additional source of tax revenue but as an essential part of a stable and sustainable economy,” said the Association for Financial Markets in Europe, which represents firms including Deutsche Bank AG and BNP Paribas SA. A “tax would be a brake on economic growth,” it said in a statement.