Following the filing of a case against the EU's proposed financial transaction tax (FTT) by the British government last Thursday, Luxembourg's finance minister Luc Frieden has said that he will back the assault on the measure:
We are very sympathetic to the stance of the UK... We will certain bring our support to the case that has been started in the European Court of Justice.
Our banking reporter Tim Wallace on the failure of past attempts at a FTT:
Hungary implemented a 0.1 per cent tax at the start of the year.
But it raised less than half the revenue the state had hoped for, bringing in 13bn Hungarian Forints (£36m) in January.
The poor showing comes as 11 EU countries push to implement a financial transactions tax (FTT) on shares, bonds and derivatives.
France forged ahead on its own, introducing a 0.2 per cent tax on sales of shares of major firms. But that only raised €200m (£169.4m) from August to November, well below to €530m expected.
And Italy launched its FTT this month. Figures from TMF Group suggest it has cut trading volumes by 38 per cent already, while German and Spanish volumes rose.
Today saw the launch of a new campaign, Business for Britain, which seeks to convince politicians to repatriate powers from the EU following an onslaught of rules and regulations that many believe make business uncompetitive.