The European Financial Transaction Tax: A reasonable reaction to the financial and debt crisis?

In the European Union, eleven member states want to adopt a uniform financial transaction tax. The objectives of the financial transaction tax are to generate tax revenues and to create disincentives for certain politically undesirable financial transactions. The Max Planck Institute for Tax Law and Public Finance analyses whether the second proposal directive for a financial transaction tax will achieve its objectives and whether it is sufficiently coordinated with the European financial market regulation.