Europe’s Zombie Tax on Trading Kept Alive by Election Season
- Domestic politics prevents plug being pulled on proposed levy
- European saga has run almost as long as the Greek debt crisis
The French, left, German, and European flag, right, fly outside the French-German Economical and Financial Meeting in Paris, France, Monday, January 24, 2005.
Photographer: Lucas Schifres/BloombergThis article is for subscribers only.
A European proposal for a tax on financial transactions is trapped in limbo: financial realities won’t let it come to life while political opportunism is preventing a quick death.
The tax initiative is being kept alive largely for domestic political reasons as German Chancellor Angela Merkel bids for a fourth term and France prepares for presidential elections this year.