Financial transaction tax tabled by European Commission - ECM
Posted Feb 15 2013 8:37am
The European Commission has tabled its controversial financial transaction tax (FTT), despite the fact that only 11 member states out of 27 support it.
The tax, proposed by Commissioner Algirdas Semeta in Brussels, has been adopted by 11 eurozone states, including France, Germany and Spain.
The FTT aims to raise public funds and encourage more responsible trading by financial institutions.
Commission President Jose Manuel Barroso pushed ahead with the tax, despite opposition.
But there are fears it will catch non-participating countries in its net.
The levy, set at 0.1% for shares and bonds and 0.01% for derivatives, will apply to all transactions "with an established link to the FTT-zone", the European Commission said in a statement, and could raise 30-35bn euros (£26-30bn; $40-47bn) a year.