Abstract
There is little doubt that financial transaction tax has significant effect on markets and economy. However, legal implications thereof are just as important to understand. For one, it's highly debatable whether any action under enhanced cooperation can be regarded as a measure of harmonization. Then there's the question on the essence of the proposed tax. Can it be really regarded as an indirect tax to which Article 113 of the Treaty on the Functioning of the European Union (TFEU) refers? If the answer to the raised doubts is no, then TFEU hardly can be the legal basis for this tax. Not only is this then a new tax, but also it raises the question on what kind of legal agreement is this creating on the European Union (EU) level. Having regard to the wide effects of the tax, the impact on international law cannot be ignored as well. As there is well-established practice on the underlying freedoms of the EU, any motion with such effect cannot ignore that. In addition, it cannot be ignored that this tax will raise the question of liability for damage caused e.g., to non-participating Member States.
Published Version
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