EU Financial Transaction Tax. An Effective Means to Curb Speculation in Financial Markets?

Bachelor Thesis , 2017 , 56 Pages , Grade: 1.7

Economics - Finance

The global financial crisis of 2007/08 revealed the necessity of improved stabilisation and regulation of the global as well as European financial markets. In this context, increased attention was given to financial transaction taxes and in 2011, the introduction of a European Union Financial Transaction Tax was first proposed. The objectives for this tax, set out by the European Commission, were tripartite: financial revenue generation, regulative strengthening and the improvement of the efficiency of financial markets.

The aim of this thesis is to examine whether the European Union Financial Transaction Tax would be an effective means to curb speculation in the European financial markets, and a suitable tax solution for the European Union. The thesis further analyses whether this tax could increase the financial markets efficiency, and contribute to a fair and substantial contribution of the financial sector to the participating countries’ public finances. In this regard, underlying theoretical concepts, potential positive effects of the transaction tax, as well as detriments and shortcomings are discussed.

Table of contents

Acronyms and abbreviations

List of figures

List of tables

1 Introduction
1.1 Background
1.2 Research questions
1.3 Structure

2 Speculation in the financial markets
2.1 General definition
2.2 Implications of speculation on the real economy

3 Financial transaction taxes
3.1 History and developments
3.1.1 Stamp duty tax
3.1.2 Keynes’ financial transaction tax
3.1.3 Tobin Tax
3.1.4 Further developments until today
3.2 Typology of FTTs
3.2.1 Securities transaction tax
3.2.2 Currency transaction tax
3.2.3 Bank transaction tax
3.2.4 Registration tax
3.3 FTT objectives, effects and detriments

4 EU Financial Transaction Tax
4.1 Debate and developments
4.2 Form and scope
4.3 Objectives and effects
4.4 Problems, detriments and criticism

5 Practical FTT experiences
5.1 Sweden
5.2 France
5.3 Italy

6 Conclusion and outlook
6.1 Results
6.2 Outlook

Reference list

• College: Berlin School of Economics and Law
• Grade: 1.7
• Author: Sabrina Schleimer (Author)
• Publication Year: 2017
• Pages: 56
• Catalog Number: V381034
• ISBN (eBook): 9783668583863
• ISBN (Book): 9783668583870
• Language: English
• Tags: Finance, Finanz, Finanzen, EU, Europäische Union, European Union, Finanztransaktionssteuer, Financial Transaction Tax, Speculation, Spekulation, Finanzmärkte, Financial markets, European markets, Europa, Europe, VWL, Steuer, Tax