Europe’s Financial Transaction Tax Faces Challenges, PwC Says
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Europe’s planned tax on financial transactions may fail to reduce market risks and could increase household costs, according to a PricewaterhouseCoopers LLP study commissioned by the financial industry.
A financial transaction tax, or FTT, may reduce gross domestic product growth by 0.3 percent to 2.4 percent, according to the report, which examined published studies on the proposal. It may also fail to address the market’s key sources of systemic risk, such as the interconnectedness of financial institutions, PwC said.