Business and financial groups decried a Brussels proposal to impose a tax on financial transactions as an assault on the City of London and on companies seeking to protect themselves against market uncertainty.
José Manuel Barroso, the European Commission president and the measure’s chief proponent, defended it as a matter of basic “fairness”.
The strong reactions suggest the highly polarising nature of the proposed levy and the fierce battle that lies ahead. The proposal, which requires unanimous approval from the European Union’s 27 member states, enjoys the backing of Germany and France, the bloc’s largest member states, while the UK is staunchly opposed.
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