EuropeanIssuers position paper on FTT
02 July 2013
EuropeanIssuers strongly opposes the draft Directive proposing the introduction of a FTT in a part of the eurozone, and is very concerned about the potentially damaging impact that the FTT could have on the ability of companies to raise finance from the markets and hedge their risk exposures.
After thorough analysis, EuropeanIssuers considers that:
1. The FTT will directly and deeply affect non-financial companies.
2. The FTT will greatly hinder the ability of non-financial companies to raise finance from the markets and hedge their risk exposures…
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by affecting corporate access to finance;
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by affecting savings;
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by cascade effects in market trading and derivative transactions;
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by deteriorating risk mitigating activities;
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by unduly taxing intra-group transactions;
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by affecting treasury / liquidity management;
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by impacting market making activities and decreasing liquidity on markets.
3. The FTT will reduce economic activity…
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by decreasing GDP growth;
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by restricting capital’s circulation;
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by increasing the risk of competitive distortion;
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by decreasing market efficiency;
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by leading to the cession or relocation of certain activities.
4. The FTT will not fulfil its intended objectives.
5. The FTT would have a negative impact on economic growth and jobs.
Press release
Full position paper with analysis
© EuropeanIssuers
