EU backs bank levy, but sees financial transaction tax only on global level

EU backs bank levy, fuzzy on use of revenue

BRUSSELS — The European Union is backing the introduction of an EU-wide tax on bank profits and pay packages.

But the 27-country block is sidestepping what to use the money the tax raises for.

The EU’s executive commission also says a separate tax on financial transactions will only work if applied on a global basis.

The commission previously considered introducing such a financial transaction tax in the EU — a move that was supported by France and Germany but strongly opposed by the U.K., the EU’s biggest financial center.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

BRUSSELS (AP) — The European Union is backing the introduction of an EU-wide tax on bank profits and pay packages.

But 27-country block is sidestepping what to use the money the tax raises for.

The EU’s executive commission also says a tax on financial transactions will only work if applied on a global basis.

The commission previously considered introducing such a financial transaction tax in the EU — a move that was supported by France and Germany but strongly opposed by the U.K., the EU’s biggest financial center.