Key points:
The EESC feels that:
- the primary objective of an FTT should be to change behaviour in the financial sector by reducing short-term speculative financial transactions;
- traditional banking will not be affected by an FTT;
- the second objective of an FTT is to raise public money. In the long-term, revenues should provide a new general source for public income;
- the FTT would have a progressive character as the customers of the financial institutions, as well as the institutions themselves, represent the wealthiest parts of society;
- the introduction of this tax would involve virtually no administrative, technical or economic costs as these transactions are already computerised;
- with a changed behaviour in the financial sector and at the same time increased public incomes the FTT has what is called a double dividend;
- a tax rate has to be searched which leads to a balance between these two objectives of the FTT
- a European system for a Financial Transaction Tax should be kept on the agenda for financial reforms.