10 September 2001, 16:41  Eichel favours 'regulatory mechanisms' to curb speculators

BERLIN (AFX) - Finance Minister Hans Eichel said he favours the implementation of "regulatory mechanisms" aimed at limiting worldwide speculative financial operations. "Capital markets should have regulatory mechanisms in place and protection against speculation," he said here. "In principle, limitations in capital movements can play a positive role," he said. However, Eichel acknowledged that it would be "practically impossible" to make a distinction between capital movements that are speculative and those that are not. Commenting on the so-called Tobin tax on speculative financial operations, Eichel said the tax aims to make short term capital movements "less attractive", but did not comment further on the tax. Ten days ago, the minister said he had "large doubts" on it.

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