EU-wide Tobin tax canned

PLANS for a European Union-wide transaction tax have been shelved after failure to reach a consensus over the levy.

France and Germany had been keen supporters of the measure and saw it as a crucial tool in alleviating the eurozone crisis.

There had been vociferous opposition from some member states, including the UK, Denmark, Sweden and the Netherlands, with ministers concluding an agreement was unlikely to be reached.

The UK in particular saw it as a tax on the City, with David Cameron describing it as a “bad idea”.

The proposal would have seen a 0.1% tax imposed on the value of stocks or bonds and 0.01% on derivative contracts.

A group of member countries – including Portugal, Spain, Italy and Austria, as well as France and Germany – announced they would implement some form of the tax and would negotiate a separate agreement.

However, implementation of such a tax is likely to be some way off, given that those states still have to negotiate the terms of the tax.

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