Germany and nine other European Union nations have decided to go ahead with the financial transaction tax after the proposal failed to get support from a majority of the 27-member union.
A meeting of the 27-member EU on Friday ended with a majority, including non-euro member United Kingdom as also euro zone nations Luxembourg, Netherlands, Sweden, Malta, Bulgaria, Czech Republic, Estonia, Ireland and Slovenia opposing the proposal and 10 members, including Germany, Austria, Belgium, France, Portugal, Slovania, Estonia, Greece, Slovakia and Spain, backing the move.
The UK government has expressed strong reservations about the impact of the tax and is expected to use its power of veto to block the implementation of this proposal, unless the tax was to be introduced globally.
An agreement to impose the tax across the bloc will not be possible in the foreseeable future, German finance minister Wolfgang Schaeuble said after the meeting.
He said the 10 members who are willing to cooperate would take the necessary steps within their respective countries and then move the European Commission for legislative support.
Under the EU law, the proposed tax can be introduced if at least nine nations support it.