Tuesday 9th September 2014 – The European Association of Co-operative Banks (EACB) is concerned that the introduction of a Financial Transaction Tax (FTT) by some EU Member States would lead to financial market distortions both within and outside the EU. A shift of market activity from participating to non-participating EU Member States or to non-EU countries must be expected. As a result, the financial industry of non-participating jurisdictions would benefit from this measure. On the other hand, the tax would affect small investors in a negative way. Even in the form of a step-by-step approach, an FTT introduced by some Member States would only have a lot of negative side effects for co-operative banks and other financial market players, and even worse implications for the real economy as a whole.
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