(Full story)
By Lionel Laurent
(Reuters) - French traders hoping for a summer break from the eurozone crisis are instead likely to be grappling with the fine print of a new tax on financial transactions, due to come into force on Wednesday.
Critics say the levy - which charges 0.2 percent on purchases of any securities issued by more than 100 top French companies - will add to brokers' woes. It comes at a time of high stock-market volatility, eroding brokerage margins and growing bets on an impending French stock-market slide.
The legislation also includes taxes on high-speed trading and the purchase of contracts that insure against a European Union sovereign-debt default, a package that politicians say will raise at least 1.6 billion euros ($1.96 billion) in a full year but which detractors say will hurt earnings and investment.
"The worst-case scenario is that the tax will encourage businesses to invest elsewhere at the expense of Paris as a financial centre," said Yannick Naud, portfolio manager at Glendevon King Asset Management
By Lionel Laurent
(Reuters) - French traders hoping for a summer break from the eurozone crisis are instead likely to be grappling with the fine print of a new tax on financial transactions, due to come into force on Wednesday.
Critics say the levy - which charges 0.2 percent on purchases of any securities issued by more than 100 top French companies - will add to brokers' woes. It comes at a time of high stock-market volatility, eroding brokerage margins and growing bets on an impending French stock-market slide.
The legislation also includes taxes on high-speed trading and the purchase of contracts that insure against a European Union sovereign-debt default, a package that politicians say will raise at least 1.6 billion euros ($1.96 billion) in a full year but which detractors say will hurt earnings and investment.
"The worst-case scenario is that the tax will encourage businesses to invest elsewhere at the expense of Paris as a financial centre," said Yannick Naud, portfolio manager at Glendevon King Asset Management
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