EU backs bank levy, fuzzy on use of revenue

[October 07, 2010]  BRUSSELS (AP) -- The European Union is backing the introduction of an EU-wide tax on bank profits and pay packages.

But the 27-country block is sidestepping what to use the money the tax raises for.

The EU's executive commission also says a separate tax on financial transactions will only work if applied on a global basis.

The commission previously considered introducing such a financial transaction tax in the EU -- a move that was supported by France and Germany but strongly opposed by the U.K., the EU's biggest financial center.

[Associated Press]

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