- Talks between 10 EU states on a financial transactions tax have stalled
- Discussions were held in the ‘enhanced cooperation’ format
- At most, those states will implement a watered-down version of the tax
- The result is good for markets, but also strengthens trends toward centralization
Ten European Union members recently tried once again to introduce a tax on financial transactions – the so-called Tobin tax. Despite agreement on the general principle, some countries are hesitating. Others seem less than eager to reach a conclusion soon: the revenues appear relatively modest and the risk of encouraging companies to migrate to more tax-friendly locations is substantial.