Momentum for global bank tax slows amid uncertainty from EU

HOPES for a global bank tax were dealt a hammer blow this weekend as European Union finance ministers failed to agree on how to impose a Europe wide bank levy.

The European Commission has in the past been adamant that Europe could pioneer its own bank levy if the rest of the world dragged their heels.

But on Saturday, many of those who attended a meeting of EU finance ministers and central bankers warned against countries taking a maverick approach.

Despite the early enthusiasm for taxing banks in the wake of the financial crisis, political leaders now disagree as to how it should be done and how the money should be spent.

Some want a levy to repair public finances, while others would use it to wind down struggling banks.