The Council of the European Union has authorised EU member states to push ahead with plans for a financial transactions tax (FTT).
The EU Commission will now make a proposal defining the substance of the enhanced cooperation, which will have to be adopted by unanimous agreement of the participating member states.
Both the European Commission and the European Parliament have now given a resounding go-ahead to the 11 EU countries planning to introduce a FTT within the framework of enhanced cooperation, which requires a minimum of nine member states to back a proposal.
The eleven EU member states - Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia - requested the use of enhanced cooperation to press forward with the FTT in October 2012. Together they account for 90% of eurozone GDP. MEPs have long advocated an FTT to make financial market players take more responsibility for resolving the crisis in the EU.
The rate or scope of the tax has not yet been determined, although it has previously been proposed by the European Commission to have a 0.1% tax on share and bond transactions, and a 0.01% tax on derivatives.
EU commissioner Algirdas Aemeta welcomed the agreement on enhanced cooperation for a FTT and said: 'Today is also a milestone in global tax history. For the first time ever, the Financial Transaction Tax will be applied at regional level. A block representing around two thirds of EU GDP will implement this fair tax together, answering the long-time calls of their citizens. And in doing so, they can pave the way for others to do the same.'
The UK remains opposed to the introduction of a FTT, fearing major location disadvantages for its London financial centre.
Matthew Fell, CBI director for competitive markets, said: 'The UK government is right to reject a Financial Transaction Tax as damaging for jobs and growth.
'It is disappointing that Eurozone economies are pursuing the FTT, whose costs ultimately fall on consumers and businesses, and will be a drag on the Eurozone recovery.
'This tax must not impinge on non-participating member states by including extra-territorial reach into financial services activity conducted in the UK.
'As the UK's largest single trading partner, a healthy European economy is in everyone's interests so we urge participating member states to reconsider this tax.'
The Council also agreed to progress on the Action Plan on Tax Fraud and Evasion which the European Commission adopted in December. This consisted of over 30 measures to tackle evasion and avoidance, including a tougher EU stance against tax havens and measures to fight aggressive tax planning.
