EU members deeply divided over financial transaction tax

A proposal to implement a financial transaction tax has sparked "a great deal of disagreement" between eurozone and non-eurozone countries and within the single-currency area on Tuesday. "There are diversified views and a great deal of disagreement over the proposal of imposing financial transaction tax," said Jacek Rostowski, finance minister of Poland which holds the presidency of the European Union (EU), in a joint press conference after a meeting of EU finance ministers. France and Germany have championed the tax in recent months, citing the necessity for drawing revenue from banks and other financial firms in difficult economic situations, while some European economies outside of the eurozone argued against the levy, saying it risks reducing the turnover for government bonds and pushing up borrowing costs. Rostowski also said that "the division is not only between the 17 eurozone member states and non-eurozone ones, but also among the eurozone countries." The clash of views came only days after the United States declined to give such a levy firm support at a summit of the world's 20 leading and developing economies which was held in Cannes of France earlier this month. Faced with strong resistance from some EU countries, advocates of the tax said it could be implemented only within the eurozone. "The Commission has proposed to put such a taxation into force in 2014. If it's not possible in 2014 in the European Union we need to do it at the same scale in the euro zone, so it must be possible," said Belgian finance minister Didier Reynders ahead of the meeting. However, Rostowski ruled out such a differentiated approach. "According to the EU Treaty, any tax issue requires unanimity among all EU members," he said.