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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.