Financial Transaction Tax (Directive)

Although the FTT achieves its fiscal target to a certain degree, it clearly misses its main objective. It cannot deter the financial sector from entering into risky business transactions, nor can it prevent future banking crises. The FTT can even jeopardise the stability of the financial markets, as minimum tax rates encourage the leakage of financial transactions within the EU. It is questionable whether a taxation of banks seated in third countries is even admissible at all.