A controversial plan to tax European stock trading has hit another hurdle, after EU lawyers said aspects of the proposed tax are illegal.
Eleven countries, including Germany, France and Spain, want to introduce a financial transaction tax, which aims to raise billions of euros from the financial services industry and deter speculative trading.
But lawyers from the European Union said the tax would breach the rights of eurozone countries that don’t plan to adopt the tax.
The issue is a provision that would impose the levy even if only one of the parties in a transaction is in a country where the law is in effect.
Lawyers argue the provision would be “discriminatory,” according to media reports citing the document from the EU council legal service.
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