German institutional investors outraged by Scholz's FTT proposal

Olaf Scholz

The financial transactions tax (FTT), as proposed by German Finance Minister Olaf Scholz, does not deal with the problem of excessive market speculation but instead penalises long-term investors like pension funds and insurers, writes Jan Wagner…

After the 2008 financial crisis, EU governments considered introducing a financial transaction tax as part of several measures that would prevent such events from recurring. The idea behind the FTT is that it should deter excessive speculation and, in doing so, promote market stability. Whether the FTT actually has that effect is still unknown. After years of discussion, EU governments never agreed to introduce the tax across the 28-member bloc.

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