UK 'would veto' Euro financial transaction tax

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The UK government is understood to be prepared to shoot down proposals for a financial transaction tax being mooted by Germany and France.

Treasury sources have indicated the UK would veto such a tax if it was brought to a vote in Europe, according to the Telegraph. France and Germany have proposed the so called Tobin tax jointly as they seek to tackle the eurozone crisis. However, the proposal sparked protests from the City and economic bodies in the UK, who argued it would harm economies across Europe. The Adam Smith Institute, the free-market think-tank, said in a note that such a tax would be 'economic suicide', warning it typically fails to raise as much revenue as expected and could cause investors to do busines...

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