Transaction tax ‘could cut pay to EU’

Ireland’s contribution to the EU budget could be cut by about 40% through a shareout of a tax being levied on financial transactions, the European Commission says.

The commission came up with this compelling argument for adopting such a tax, showing that it would cut in half member states’ contribution to the EU budget by up to a half.

For Ireland, which contributed €1,264m last year, the reduction would be worth €534m, according to the commission. The country receives €500m more from the EU per year than it contributes, mainly for agriculture.