EU Lawyers Conclude Proposed Financial Transactions Tax Illegal

Attempt to tax banks exceeds states' powers under customary international law

A plan to tax financial transactions in 11 European Union member states from 2014 is illegal, the bloc's lawyers have concluded, dealing what could be a final blow to the measure as proposed.

The findings set out in a 14-page legal opinion obtained by Reuters will make it harder to press ahead with a measure aimed at making banks pay about 35 billion euros a year to make up for receiving taxpayer aid during the 2007-09 financial crisis.