Jose Manuel Barroso, president of the European Commission, has today announced proposals for a financial transaction tax on banks across Europe. The UK Treasury immediately said that it would absolutely resist any tax that was not introduced globally. The impact is larger on the UK as the majority of European financial transactions take place in London, about 80% of the revenue raised would come from London.
The Commission responded to the UK threat of a veto by saying that they would implement the tax in the rest of Europe anyway.
Why would Barroso say that Europe would go ahead with a tax even without the UK?
To find out more, visit the ever excellent, Game Theory Strategies.