8.3.2011
By Simon Miller
The European Parliament has given Prime Minister David Cameron further Euro-headaches with an endorsement of a Robin Hood tax on banks.
The Parliament voted 529 to 127, with 18 abstentions, in favour of a Tobin Tax which would be levied on each financial transaction by banks based in the European Union at a rate of up to 0.05%.
MEPs were voting on an own-initiative report by Greek Socialist Anni Podimata but, as it was not introduced by the European Commission, it carries no legislative power.
However, the vote will maintain pressure on Brussels to consider a Tobin tax when negotiations begin next year for the next seven-year budget. The Parliament is keen for the EU to draw its funding directly rather than through member states.
The vote rears the prospect of further tensions for the UK Government following various rulings against the country including prisoner voting rights which has threatened to resurrect anti-EU feeling among backbenchers. As a result it is highly likely that the UK would use its veto unless the world's other major financial centres sign up.
Without international agreement, the City of London would almost certainly suffer a mass exodus of financial institutions if the tax was implemented.
UKIP leader Nigel Farage, described the EU Financial Transaction tax as "an attack on the City of London".
"If I did not know better I would think there was a plot afoot here... to stop the Anglo-Saxons getting on with their business," he added.
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