Although the idea of imposing a Financial Transaction Tax across the whole of Europe-wide was vetoed last year, 11 states have decided to go ahead and implement the tax within their own countries. The tax is intended to discourage undue risk-taking and to ensure that the financial sector pays its fair share of the costs of the financial crisis. It will be set at a minimum of 0.01% on derivative transactions and 0.1% on other transactions.
Although the tax will not be levied in the UK, it may have to be paid by pension schemes who hold shares in the European countries affected.