LONDON Dec 4 The proposed financial transaction
tax in 11 European Union member states does not breach EU or
international laws, legal advisors to the bloc's executive said
in a document.
A legal opinion for member states in September said a core
element of the tax was illegal, threatening to derail the
The European Commission's own legal advisors dismissed this
view in a 20-page analysis seen by Reuters on Wednesday.
"Based on the above analysis the Commission's services come
to the conclusion that... the proposed FTT directive is in
conformity both with customary international law and EU primary
law," the document says.
The tax on stock, bond and derivatives trades has been
proposed as a way of raising money from banks in return for the
taxpayer aid they received in the financial crisis.
The document says the proposal does not lead to any
"inadmissible" effects in countries outside the 11 taking part.
"What the Council Legal Services perceives as discrimination
is in reality nothing but a disparity between different national
tax regimes," the document adds.