European countries plan to scale back a proposed financial transactions tax drastically, initially imposing a tiny charge on share deals only and taking much longer than originally intended to achieve a full roll-out.
While yet to be formally proposed, the sweeping revisions would mark a victory for banks and trading organizations which have lobbied furiously against a scheme aimed at making them contribute to the costs of the financial crisis.
But the move also reflects big practical problems in collecting the revenue and political divisions over the tax, which has encountered legal challenges from London and caused concern even among the 11 euro zone countries backing it.
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