In Europe, a proposed financial transaction tax (FTT), or so-called "Tobin tax", will impose a levy on trades in stocks, bonds and derivatives. Exemptions include overnight repurchase agreements, the issue of shares and units in retail funds known as Ucits and the exchanges of stock in mergers. Eurozone states and central banks intervening in sovereign bond markets would not be liable although ordinary traders in the same markets would.
In January 2013, it was proposed that Germany, France and nine other euro area countries would agree the exact terms of Europe's financial transaction tax. The draft was published that cast a wider net than expected and added anti-avoidance measures so that financial business would not decamp to safer havens. It was proposed that the tax should apply to financial products issued in the participating area of Europe, even if the parties were trading it only in Asia, the US or Britain (which opposes the tax). Critics of the proposals said the tax would affect long term growth and cost jobs.