Government will oppose financial tax plan unless it is adopted globally

A PLAN to tax financial transactions in the EU from stocks and shares to futures and derivatives which could raise an estimated €57 billion a year will be opposed by the Government, unless it is adopted globally.

There are deep divisions between member states on the controversial tax with some warning it will damage the financial services industry in cities including Dublin and London, forcing them to relocate.

But there is pressure from some governments, notably France and Germany, and from NGOs and some economists for the tax, arguing that it would compensate taxpayers for their €4.6 trillion bail-out of banks and the consequent increase in countries’ debts.