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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.