Since the creation of a liberalised financial market in mid-1990, much concern exists in the EU about differences in company tax rates, exchange rate changes as well as inflation differentials. This book states that an active policy in the area of taxation is desirable with close monitoring of the EU tax configuration.

This book looks at concerns in the EU about differences in company tax rates, exchange rate changes, and inflation differentials, building an analytical model which includes the finance decision of firms, particularly those decisions which have a strong tax component.