Malta, backing UK, Sweden against 'Tobin Tax'

EU finance ministers meeting in Brussels are split over the so called ‘Tobin Tax’ as they face growing pressure to resolve the debt crisis which is plaguing the euro.

Malta, together with Bulgaria, Cyprus and the Czech Republic are said to be firm in their backing to Britain and Sweden who are insisting for the tax to be binned.  

They believe that a levy limited only to Europe would just drive business to other non-taxed foreign markets. They also argue that the cost of such a tax would simply be passed down to customers.

France and Germany are leading the charge on arguing for the new tax, with seven other countries - Austria, Belgium, Finland, Greece, Ireland, Slovenia and Spain - expressing support for the idea.

They believe that financial markets need to pay their fair share and that Europe should lead the way on implementing such a levy, even if other parts of the world are unlikely to follow

suit.

Seven of the EU's 27 member states - Denmark, Italy, Latvia, Luxembourg, the Netherlands, Romania and Slovakia - said they hadn't made up their mind, though many noted that they had

serious concerns. The remaining five countries did not express an opinion.

The idea of the tax has been around for years, but has gained traction with the crisis as a tool to curb market speculation.

Under a proposal brought forward by the European Commission, it would also lighten the financial burden on member states by using the tax's revenue to offset national contributions to the EU's budget.

The bloc's executive estimates that the levy could yield €57 billion a year.