British savers could suffer a pounds 3.6bn cut in the value of their savings following the introduction of a financial transaction tax, a study into plans by
German and Italian households would incur the biggest hit to savings following the introduction of the FTT, said the report by consultancy London Economics.
Savers in Spain and Slovakia would also lose billions should their governments introduce the tax as the impact of the levy drives down the value of their holdings.
Under the most draconian version of the FTT that the 11 countries involved could agree,
The report, which was immediately derided by anti-poverty campaigners, comes before meetings in
The countries are poised to agree terms for implementing the tax, which will add a charge to trades in equity and debt markets, currency transactions and the exotic derivatives blamed by many economists for the 2008 banking crash.
EU finance ministers gave their approval last year to the FTT in the teeth of dire warnings from the financial services industry of an exodus of funds and despite abstentions by the
The levy, which could raise as much as
According to London Economics, which wrote the report for the
The Robin Hood tax campaign, which brings together anti-poverty charities to promote the FTT, said the report was based on the false premise that most trading by EU banks was in the interests of savers. It said studies of the financial services industry showed most transactions were designed to generate commission and charges for the banks without bringing any benefit to savers.
To illustrate the benefits of the levy for savers, the campaign has produced a video starring Bill Nighy. Spokesman
"As many experts have shown, given the tax's design, the effects on people's pensions and savings will be negligible."
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