French: Tobin tax to be in place by end of this year

A TOBIN tax will be in place by the end of the year regardless of staunch UK opposition, the French minister for Europe has declared.

Jean Leonetti said it is “on the programme” for the next EU summit at the end of January and “will be put in place before the end of 2012”, raising the prospect of another British veto.

Having stood up for the City in December, PM David Cameron will be under pressure to stick to his guns.

Leader of the UK Independence Party Nigel Farage said: “It comes as no surprise that France and Germany are in full agreement on this tax. Why wouldn’t they agree to raid Britain to fund their own failures? David Cameron has to block this proposal.”

But even if the UK does veto an EU tax, the Eurozone could press on with its own version, which bankers fear could affect some City transactions.