On the European Way to a Financial Transaction Tax under Enhanced Cooperation: Multi-speed Europe or Shortcut?

After the G-20 and European Union (EU) Financial Transaction Tax (FTT) proposals came to a dead end, some European countries proposed enactment of the tax through enhanced cooperation. The initial substantive proposal raises numerous questions on its configuration aimed at a non-fiscal objective while actually giving preference to the revenue-raising objective among the others. Moreover, further analysis of the impact on the Internal Market because of the proposed enactment under enhanced cooperation is needed. This article aims to provide such an analysis by focusing on the proposed FTT's main characteristics and its compatibility with EU law. The issues discussed show once again the inconsistencies between the EU Member States' retained sovereignty on tax matters and the high development of the Internal Market and the EU freedoms, which often result in conflicts.