Europe to go it alone after G20 rejects bank tax plan

The European Union yesterday pledged to go it alone with a banking levy amid continuing disagreements over a worldwide plan.

Days after the G20's apparent dumping of the idea after objections from the likes of Canada, Japan and Brazil, the EU said it planned to press ahead with its own measures.

European finance ministers promised to find a way to tax banks more, amid ongoing pressure from voters furious at how banks behaved in the run-up to the financial crisis and who now face bruising cutbacks to deal with the Continent's debt.

But disagreements remain among member states on how the revenues from a future levy should be used. Britain and France want revenues from any levy to be made available for general spending, while Germany wants a ring-fenced fund to pay for future bailouts.

British Chancellor of the Exchequer George Osborne has made it clear that he does not believe countries should find themselves paying for the problems of other nations.

Britain has not entirely lost hope of persuading the refuseniks to join an international agreement when the G20 meets in Seoul.

On the issue of taxing financial or banking transactions, Josef Proell, Austria's Finance Minister, said: "The G20 was a setback. But not for Europe. We still want this and will continue to advocate it - the sooner the better."

- INDEPENDENT