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EU Lawyers Say Proposed Financial Transactions Tax is Illegal

Imposing a financial transaction tax (FTT) in 11 European Union member states would be illegal, according to the bloc's lawyers.

The controversial tax aims to discourage risk-taking by taxing transactions of shares, currencies and bonds.

The 14-page legal opinion concludes the move would exceed member states' tax powers.

It adds that the measure is also incompatible with the EU treaty.

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