The financial transaction tax has been the subject of disquiet in boardrooms across Europe. Since February, when the European Commission published its FTT proposals, the chorus of concern has approached a cacophony. And for good reason.

Among the 11 EU member states that have signed up, there is probably enough recognition of the problems to ensure the proposal will not be implemented by the end of the year as planned. However, the threat remains that it will proceed in some form.

Of course, the adverse reaction from the financial services industry is grist to the mill for some proponents of the tax. The FTT is, after all, described as “ensuring that financial institutions make a fair and substantial contribution towards the costs of the [global financial] crisis” while simultaneously “creating appropriate disincentives for transactions that do not enhance the efficiency of financial markets”.