Cameron criticizes EU's financial transaction tax

FXstreet.com (Barcelona) - British PM David Cameron said on Thursday at the Global Investment Conference in London that the financial transactions tax, which the EU plans to introduce, would be harmful for the financial center in the City and consequently for the rest of Europe, for which it renders services.

The British PM argued that “we shouldn't spend our time in politics bashing banks and financial institutions,” and declared that the levy (which would be placed on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU), would be a counter productive “unless it is introduced all across the world.”

David Cameron also reiterated that the UK should hold a referendum on its EU membership, but following a renegotiation of its relationship with the organization.

In his opinion the EU needs to implement reforms as it “is going to have to be flexible enough to include within it countries like Britain who are not in the single currency and won't join the single currency, and countries that are in the single currency.”