The financial transaction tax (FTT) is gaining momentum as the 10 country coalition which is pressing ahead with the tax grows to 12.

Estonia has joined the group and the Netherlands has also expressed an interest in participating, albeit on the proviso that exemption is granted for pension funds.

Now, to move forward, all 27 EU member states and the European Parliament must agree to allow the Commission to draw up plans for a FTT within the framework of enhanced cooperation.

At the latest European Economic and Financial Affairs Council meeting in Brussels on 13 November, European Commissioner, Algirdas Semeta has urged European finance ministers to 'move forward quickly' on plans for a FTT for participating member states.

Semeta said: 'Our analysis showed that enhanced cooperation on FTT will not undermine the Internal Market. On the contrary, it will significantly reduce its fragmentation and will strengthen it. No evidence - economic or otherwise - was found that challenged this conclusion.

'This stage of the procedure is about allowing the 11 member states to go ahead with an FTT in the context of Treaty provisions - as opposed to inter-governmental cooperation - while, of course, respecting EU law.'

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.

The proposal must be adopted by a qualified majority of member states, and receive the Parliament's consent, in order for the 11, potentially 12 member states to move forward. The Commission intends to table the substantive proposal on the FTT, for discussion and adoption by the participating member states later in the year.