European Commission presents financial transaction tax

The banking sector played a role in causing the economic crisis, the commission said

The European Commission has formally proposed a financial transaction tax on all EU member states.

The tax would raise about 57bn euros ($78bn; £50bn) and would come into effect at the start of 2014.
Commission president Jose Manuel Barroso said banks must "make a contribution" as Europe faced its "greatest challenge".
The announcement comes as officials prepare to review Greece's progress in cutting its debt levels.
The financial tax would be levied at a rate of 0.1% on all transactions between institutions when at least one party is based in the EU. Derivative contracts would be taxed at a rate of 0.01%.
The commission said the tax was "to ensure that the financial sector makes a fair contribution at a time of fiscal consolidation in the member states".