EU ministers discuss plan for financial transaction tax

European Finance ministers are beginning talks on plans to introduce a financial transaction tax around now.

The tax is proposed by France and backed by eight other governments, in the face of stiff resistance from the City of London which houses 80% of Europe's finance industry.

The French proposal states that the tax is necessary to ensure the banking sector bears some of the costs of the financial crisis.

Alongside the tax talks, ministers are also due to reach a decision on whether to fine Hungary for what the EU says is excessive public spending.

The verdict comes a day after Eurozone governments granted Spain some leeway in its struggle to reduce its budget deficit.