Financial transaction tax

 

Sir, – The academics who stated that the financial transaction tax is gaining momentum display a surprising misunderstanding of EU decision-making and fail to appreciate that the tax is in a precarious situation (February 26th).

First proposed in 2011, the financial transaction tax could only continue through the enhanced cooperation of 11 EU member states.

Now even that group has shrunk, with Estonia withdrawing its support last year.

The remaining states are facing up to difficulties of trying to impose such a tax in isolation from the rest of the world and in isolation from other EU member states.

The financial transaction tax is on life support in Europe and will likely die off or remain the subject of perpetual negotiations.

No amount of support from Ireland will change this reality. – Yours, etc,

KEVIN HINEY,

Brussels.