The Implementation of the Financial Transaction Tax (FTT) – A financial sight on the potential influences on European Financial Markets

Abstract

This work examines the potential influences of an implemented Financial Transac- tion Tax on European financial markets, based on the proposal of the EU Com- mission. Historical as well as current data have been analysed to ensure a logical prediction of potential consequences. Sights of proponents and opponents have been emphasised to guarantee an overall balanced argumentation. On the one hand several positive impacts have been stated, like the creation of a new source of income and a uniform level of taxation. On the other hand the negative impacts, like miscalculations and the outflow of capital, outweigh the positive ones, as the advantages could strengthen the disadvantages. The imbalances of arguments lead to the conclusion that an implementation, based on the analysed framework, would not be sensitive at this time.