Eleven European Union (EU) countries have signed an agreement to begin charging a tax on international financial transactions.
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The tax imposition could begin at the start of 2014 and is an attempt to raise more revenues from the financial industry. It’s a plan that has come under attack since it would dampen the German economy as a whole.
The plan establishes residence and issuance ties to firms in participating nations who may try to trade outside the tax zone.
Local levies have been established in patchwork style across the region and the new tax is an effort to institute a uniform tax.
Day-to-day transactions and by individuals and non-financial firms would be exempt as well as primary offerings of stocks and bonds.
Trades with central banks and the European Stability Mechanism (ESM) would also be exempt.
Other concerns are that the plan will stymie the still weak
economic rebound in the EU.