European Court of Justice ruled against a British application to block a financial transaction tax (FTT), also known as the Robin Hood Tax, BBC reported. The British government has not signed up to the tax, which it thinks is a threat to the country’s banking sector.
The court suggested to Britain that it should wait until the details of the plan are agreed at EU level.
The tax is aimed at collecting extra funds and limiting speculative deals on financial markets. Germany, France, Italy, Spain, Belgium, Austria, Portugal, Greece, Slovenia, Slovakia, and Estonia opted in favor of the new tax.
The financial transaction tax will be valid in those countries that approved it. However, the British financial institutions involved in transactions with the participating EU member states would be liable to pay it. UK Prime Minister David Cameron has previously said the tax was "not a good idea" and that it would not work unless applied all over the world. Moreover, British people express fear that the burden of the tax would be passed on to pensioners and savers.
In the meantime, supporters of the tax said that the tax would provide valuable funds for the budget, and accused the UK government of "defending one rather rich square mile", referring to the City of London that hosts headquarters of major credit institutions.