Germany and France move to resuscitate transaction tax plan
Germany and France are moving to spearhead a revival of the European transaction tax – or so-called Robin Hood tax – reports Reuters.
The two countries are due to hold a joint cabinet meeting on Wednesday, where the plan will probably be discussed.
Instead of worldwide, pan-European or even euro area coverage, it'll likely now include just 11 Eurozone countries.
Owing to US opposition, the languishing project to tax financial transactions failed to win worldwide backing.
It’s expected to be scaled back significantly from the original plan to raise €35bn (£28bn) annually to make banks pay back some of the cash they received during the financial crisis.
Concerns are predominantly that the tax will hinder economic recovery. Britain, Ireland, the Netherlands and Sweden are among countries that opposed it, because of the potential for it to push banks and financial groups into trading elsewhere.
Although it’s likely to end up being much-diminished version of the original proposal, if introduced, the tax would be something of a small triumph for France and Germany.