France's Noyer warns about consequences of transaction tax

Bank of France Governor Christian Noyer is concerned that Europe's proposed tax on financial transactions could damage public finances and "destroy" part of the French banking industry. If the levy is not implemented correctly, Noyer says, it could pose serious risk to the economy. "It will be essential to define the base, interest rates and scope of a possible financial-transaction tax in order to prevent the risk of destroying entire segments of our financial industry or the offshoring of jobs, as well as the highly counterproductive effects on government borrowing and the financing of the economy," Noyer said.

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