24.05.2012
By Simon Miller
The FTSE 100 started this morning slightly up as investors clawed back yesterday's losses although trade is expected to remain cautious after the EU leaders summit last night failed to offer concrete proposals over a Greek exit.
The FTSE is up 20.85 at 5,287.26 after closing down at 5283.1 after starting at 5403.28 although other European indices continue their falls from yesterday with the CAC 40 1.42 at 3001.85 while the Dax 30 was down 13.9 6271.85 (09.28 BST).
The meeting failed to agree concrete proposals to resolve the ongoing issue of Greece and the meeting was overshadowed by the vote on a financial transaction tax (FTT) that was carried in the European Parliament yesterday.
Speaking to reporters after the six hour meeting, UK Prime Minister David Cameron said that there were a few good things along with some "bad" such as the FTT which he warned would cost jobs and pensions.
"Then there were some bad ideas too. The FTT is a bad idea - it will put up the cost of people's insurance, put up the cost of people's pensions, it will cost many, many jobs. It will make Europe less competitive and I will fight it all the way," he said.
In a statement, the president of the European Council Herman Van Rompuy said the meeting was called to discuss how to boost growth in the EU and to "clear the air".
He added: "The discussion about growth is not new. We already share a growth strategy and it has been a constant concern. However, our ongoing work on growth has been overshadowed by our vital efforts to ensure financial stability in the Eurozone. But it is no less important."
Reaffirming his wish that Greece should remain in the euro, Van Rompuy added: "There should be no misunderstanding: it is obvious that opposing "deficit reduction" and "growth" is a false debate. They are two sides of the same coin.
"Without sound public finances there can be no sustainable growth; but without sustainable growth, the measures to bring our debt levels under control will be done in vain."
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Commissioner makes case for finance sector tax
The EU Commissioner for Taxation Algirdas Semeta has reaffirmed his belief that there is a political and economic case for taxing the financial sector with either a Tobin tax on transactions or a tax on activities.
