Financially troubled Europe may have found a new way to bring in billions of dollars in revenue. It will place a tax on transactions by banks and related companies. That could pour cold water on the trading businesses in the region.
The new tax was inspired by a political drive to make the financial industry contribute more heavily after a financial crisis in 2007 sparked a global economic downturn. It is due to be rolled out with 10 other European countries, including Germany and Italy but not Britain. Critics say such a tax can only work if it is imposed worldwide, or at least Europe-wide, and that its adoption in around 2015 risks pushing trading and jobs elsewhere.