The Dutch central bank is opposed to the introduction of a tax on financial transactions, as proposed by the European Commission last year. The plan is also backed by French president Nicolas Sarkozy.

The introduction of such a tax would be ‘undesirable’, the central bank said in a statement. In addition, ‘the current proposal will slow down economic growth … and set back Dutch banks, pension funds and insurers €4bn a year.’
The bank said the Netherlands, with its relatively large financial sector, will contribute a large share of the €57bn which Brussels hopes the tax to raise. In addition, the tax would have unpredictable and negative effects, especially if not applied world wide, the statement said.
Backing
According to the NRC, Dutch prime minister Mark Rutte said several months ago he is in favour of the transaction tax, if it applies to ‘more than a couple of countries’. This is necessary to head off negative effects on competition.
However, the government’s macro-economic forecasting agency has also said the tax will have a negative effect on the Dutch economy and will do little to counteract risky trading behaviour, the paper said.
Britain is also strongly opposed to the plan.