Financial transactions tax would apply to British banks

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The European Commission said that British banks will be subject to tax financial transactions proposed in the case of approval in the European Union, even in the absence of Britain’s accession to this tax.

This comes as France and Germany is pressing strongly for the application of this tax in the context of efforts to contain the financial crisis in the euro area, but strongly opposed byBritain and says it targeted and unfairly financial district in London, the largest financial center in Europe.

In the light of Britain’s opposition to this tax, which is not a member of the euro area, the thinking is moving towards the possibility of applying this tax within the euro area only.

But officials at the European Commission is the executive arm of the European Union saidthat even if Britain did not accede to this tax, the financial transactions carried out byBritish banks could be subject to the tax as long as the seller or buyer of such treatment is linked to one of the countries of the euro area.