Financial Transaction Tax

Key points:

• The EESC considers that the FTT could be a key element in the EU's new system of own resources and reiterates the need to secure global application of the FTT. The EU should act as a pioneer in this area

• The FTT will offer a way to stabilise the financial markets.

• One of the most significant effects of introducing the FTT would be to improve the sovereign debt situation.

• In order to reduce to a minimum the risk of financial activities being relocated, the residence (territorial) principle must be coupled with the issuance principle.

• The EESC underlines the need to manage the negative macro- and microeconomic consequences of the FTT. For this reason, the EESC believes appropriate compensatory mechanisms should be implemented.

• The assessment of the impact of the FTT should cover the effects of the long-term reduction in GDP as well as the global effects of its contribution.
• The EESC calls on the Commission to conduct an additional, more thorough, assessment.