Financial transactions tax would be bad for Ireland - FF

IRELAND’S FINANCIAL SERVICES could face “serious consequences” after Britain opted out of the new EU agreement on fiscal stability, Fianna Fáil’s finance spokesperson has said.

Michael McGrath warned that jobs could be a risk if Ireland was forced to adopt a financial transactions tax, which is “likely” to form part of the new deal.

The UK opted out of the agreement which would mean that any tax on financial transactions would not apply to the UK financial services sector and the City of London.

“Such a scenario could have serious ramifications for what is a critically important industry in Ireland,” said the Fianna Fáil finance spokesperson.

“The financial services industry is highly mobile and we cannot allow a situation where London becomes a more attractive base than Ireland because of a new tax”.

British Prime Minister David Cameron opted out of the deal in part because he failed to secure concessions for the financial services industry in the City of London.

McGrath called on the Taoiseach to “urgently” clarify whether Ireland has committed to a new financial transactions tax – and to state what the implications of the tax would be fore Ireland given that the UK will be exempt.