A Financial Transaction Tax has been agreed by 11 Eurozone countries.
The controversial tax would see a percentage paid on every transaction of stocks and shares.
The levy has been seen as a way of making banks, hedge funds and traders pay a price for the financial crisis.
But Ireland along with the UK will not be implementing the tax.
The Taoiseach Enda Kenny said back in January that he would not allow Europe impose a financial transactions tax if Britain refuses to accept the move.
The initiative was pushed hard for by Germany and France but strongly opposed by Britain, Sweden and others.
It gained more attention at a European Union finance ministers’ meeting in Luxembourg when more than the required 9 states agreed to use a Treaty provision to launch the tax.
EU Tax Commissioner Algirdas Semeta has welcomed the move.
“Today we have received a clear and very welcome signal that there will be enough Member States on board for an EU Financial Transactions Tax” he said.
“The requests are to move ahead on the basis of what the Commission proposed last year”.
“I proposed this tax as a source of new revenue from an under-taxed sector, and a means of encouraging more responsible trading. It would also prevent a patchwork of national bank taxes from creating difficulties for businesses in the Single Market”.
“So now it is the time for swift progress. I already have 7 letters ”“ from Germany, France, Belgium, Austria, Slovenia, Portugal and Greece and today we got clear assurances that Italy, Spain, Estonia and Slovakia will send theirs very soon” he added.
Proponents of the tax believe it will help curb the culture that led to the 2008 global financial crisis and ensure the industry which had to bailed out pays its fair share.
But opponents argue it will dampen growth and only lead to the finance industry to shift to countries where no such tax exists.
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