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“I do not believe it was ever the intention of the French government to do something that would trigger the destruction of entire sections of the French financial industry, trigger a massive offshoring of jobs and so damage the economy as a whole", Mr Noyer told the Financial Times in an interview.
He said the Commission’s proposals posed “an enormous risk in terms of the reduction of output in the FTT jurisdiction; increased cost of capital for governments and corporates; a significant relocation of trading activities and decreased liquidity in the markets”.
Mr Noyer, a member of the governing council of the European Central Bank, added: “The most important concern for the central banks [is] the risk of the total drying up of repo markets. That means the transmission of our monetary policy would be seriously impaired and the risk in terms of financial stability would not be negligible.”
Mr Noyer said the focus for the FTT should be on a levy similar to that already in place in France, with “one or two other segments” that could be included “without detrimental effects”.
Full article (FT subscription required)