The euro zone is facing its darkest hour but will emerge more competitive than in the past, the chief executive of the London Stock Exchange told CNBC on Friday, though he noted that smaller businesses are very important to Europe’s recovery.
Xavier Rolet said he was increasingly confident that Europe is now facing the worst of the crisis, adding that he was cautiously optimistic about the future.
He also argued that small- and medium-sized businesses presented the solution to Europe’s current economic problems, predicting that proposals for a financial transaction tax (FTT) as suggested by the previous French government under Nicolas Sarkozy would not be implemented across Europe.
“First of all, the FTT is not a unanimous project. I think politicians who have promoted it understand its detrimental impact on liquidity and particularly the cost of capital, because the government bond market is meant to be exempt from the FTT,” Rolet told CNBC.
“So they do understand the negative impact on the cost of financing particularly on companies.”
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