ABSTRACT
In January 2013, 11 euro-zone states decided to introduce a financial transaction tax (FTT) with the goal of making the financial sector contribute to the cost of economic recovery after the 2008 financial crisis, as well as creating disincentives for transactions in certain kinds of financial instruments considered to have contributed to the crisis. In September 2011, the Commission adopted a proposal for a Council directive on a common FTT system to be implemented by January 1, 2014 across the then 27 member states. The crisis generated a debate about various proposals for imposing new taxes on the financial sector to contribute to economic recovery. In the midst of a crisis of legitimation caused by the financial crisis, the dialogue among policy-makers and private sector groups was generally more adversarial than during pre-crisis times. Political receptivity towards pro-reform demands can be explained in light of increased issue salience and public pressure in favor of reform.
