Ernst Stetter, FEPS General Secretary
2010/07/12
A financial transaction tax will create an incentive for more stable, long-term investments.
A financial transaction tax improves the functioning of financial markets by reducing excessive volumes and volatility in these markets. A financial transaction tax increases transaction costs on short-term trading and so restraint those with excessively short-term speculation horizons. A financial transaction tax has the potential to generate billions of dollars in cost savings and efficiency gains, which would be additional to revenue raised by the tax itself.