EU states to introduce financial transaction tax

Updated at 12:20 pm on 23 January 2013

The European Union has allowed 11 of its member states to introduce a new tax designed to discourage financial speculation.

Details are yet to be agreed, but it is expected the financial transactions tax will be levied on every trade in bonds, shares and other financial products, the BBC reports.

Countries introducing the tax - including Germany, France and Italy - hope it will raise billions of euros.

Critics, however, say trading will simply move away to other countries .

Britain and 15 other EU members will not introduce the tax.

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