Bundesbank chief Jens Weidmann attacks FTT In its current form, the FTT would cover asset-backed money market transactions or so-called repurchase or repo agreements. The repo market plays a central role in equalisation of liquidity between commercial banks, Mr Weidmann said. "If it doesn't function properly, the transactions are deflected onto the Eurosystem [European system of central banks], and central banks will continue to be heavily involved in liquidity equalisation between banks well after the crisis," Mr Weidmann argued. This shows how important it is to examine a regulatory measure before it is implemented. And this takes time," he said. Separately, Mr Weidmann called upon France to set an example to other eurozone countries in matters of budget policy. Countries should not be "too flexible" in interpreting Europe's tighter budget rules and "here France has an important role to play with regard to the credibility of the rules and confidence in the sustainability of public budgets," Mr Weidmann said. Contrary to its initial targets, Paris will not be able to bring its public deficit back below the 3pc of GDP ceiling agreed by the EU, but run up a deficit ratio of 3.7pc instead. France is negotiating with the EU Commission for a possible postponement of its budget targets. Edited by Andrew Trotman