The European Court of Justice has today dismissed the government’s legal
challenge against the EUs proposed financial transaction tax (FTT). <br><br>
London Mayor, Boris Johnson described the tax as “barmy” and went on to
warn that this latest decision raised “serious questions” regarding how
the government proposed to protect the City’s financial sector from
potentially crippling EU legislation.<br><br>
Mayor Johnson said: “This judgement beggars belief. With London’s
economy buoyant once more and driving the national recovery, the last
thing that we need is a barmy tax that will stamp on growth and
potentially drive businesses to financial centres outside the EU.”<br><br>
The mayor also stated that the ruling brought into question the UKs
ability to safeguard its highly profitable financial sector and <a href="https://www.randstad.co.uk/jobs/s-financial-services/london/city-of-lon…; target="_blank">financial services jobs</a> even though
the country is not a member of the Eurozone. <br><br>
All is not doom and gloom however, as the judges issued a statement
saying: “The court considers that the arguments put forward by the
United Kingdom are directed at elements of a potential FTT and not at
the authorisation to establish enhanced cooperation, and consequently
those arguments must be rejected and the action must be dismissed.” The
statement went on to add that crucially, the objections couldn’t be
examined until FTT is introduced.<br><br>
Johnson concluded by agreeing that the government’s action had been the
correct way to go, adding that he urged the Treasury to mount a further
legal challenge if and when the FTT becomes law. That is expected to be
towards the end of this year.