On August 1, 2012, France implemented a “Tobin tax” or Financial Transaction Tax (FTT), which consists in a 0.2% tax on stock purchases of French publicly traded companies with a market value over €1 billion. A similar tax was subsequently adopted in Italy; whereas in Germany the government preferred a European Union rather than national version of the tax. What are the likely relative consequences of the tax on trading volumes on the Paris, Milan, and Frankfurt stock exchanges? How does the tax change the relative attractiveness for foreign companies to list on those exchanges?