EU: Financial transaction tax to get green light in 2012

France’s minister for European affairs Jean Leonetti has signaled plans for a Europe-wide financial transaction tax are set to be legalised by the end of 2012, despite opposition from countries including the UK.

According to the minister, the French and German governments are in strong agreement on the proposal, the Telegraph reported. The tax has been vehemently opposed by British and Swedish governments.

"This is on the programme for the next European summit [on January 30]. Nicolas Sarkozy and Angela Merkel have decided on this and it will be put in place before the end of 2012," Leonetti said in a French television interview.

In the UK, the Robin Hood Tax Campaign has been set up to lobby for the imposition of the tax, set up to raise revenue from the financial sector to help tackle poverty and climate change at home and abroad.

David Cameron has said adopting such a tax would be against Britain's national interest.

The EU's executive commission said a financial tax was set to be introduced in 2014 to be charged at a rate of 0.1% on share dealings. Initial estimates when the plan was first introduced in September 2010 suggest the tax could raise €55bn (£46bn) a year across the EU. The proceeds will be shared between its central structures and member states.

Last month, the Irish finance minister Michael Noonan warned Ireland would be disadvantaged if Britain was not covered by the tax.

He argued because Dublin is a major centre for funds administration in Europe, London could gain a competitive advantage if it did not join.

Noonan said a tax introduced on a global level through the G20 would be a preferable option.