UK opposes EU’s financial tax

The European Commission-proposed financial transaction tax on all EU member states to raise funds for providing a bailout to financially distressed EU countries like Greece, has found stiff resistance from UK.

The proposed tax has the backing of Jose Manuel Barroso, the head of the European Commission

Earlier, EU president Jose Manuel Barroso had said that banks must "make a contribution" as Europe faced its "greatest challenge". (See: European Commission approves in principle tax proposal, presents Eurobonds)

The banking sector has been widely held responsible for its role in bringing about a global financial collapse, and should therfore contribute, he urged.

However, the proposal has been criticised by the UK for being a "spurious bid to bolster the eurozone" at London's expense, suggesting instead a eurozone solution to a eurozone problem.

The British government turned down the proposal saying it would ''resist'' any such move, and would it would use its veto to block the tax unless it was applied globally.