Kenny backs UK over financial transaction tax

The Taosieach Enda Kenny has said he will not allow Europe to impose a financial transaction tax if Britain does not accept the move.

British Deputy Prime Minister Nick Clegg has said his Government remains opposed to any such tax which is being pushed by the French President Nicolas Sarkozy.

He was speaking in Dublin this afternoon after the latest meeting of the British Irish Council.

Mr Kenny said he will only agree to a tax if it is applied globally.

The Taoiseach said: "You could not have a situation where a financial transaction tax resulted in a difference between what happens in London and what happens here in Dublin.

"Obviously, the Financial Services Centre here is of particular importance to our economy as indeed the City of London is very important to the British economy. We have made it clear that that will not be acceptable to us."