PARIS is looking forward to clinch an agreement before the end of the year to launch an ‘enhanced cooperation' mechanism allowing a small group of at least nine EU countries to move forward on a financial transaction tax (FTT).

France launched its version of the financial transactions tax (FTT) in July, but its ambitions for the tax are much wider as it is leading the way towards a European tax.

Enhanced cooperation allows a minimum of nine EU member states to continue with integration policies without the others as unanimous agreement between the 27 member states is difficult to achieve.

France's objective was "to hit two targets with only one gun" – have a strong EU budget as an aggregate of national contributions, and ensure that countries keep stringent budget balances.

According to the proposal, the FTT would apply to any transaction in financial instruments, excluding primary market issuance, and bank loans. Share and bond transactions would be taxed at 0.1% of the higher of consideration and market value and derivatives at 0.01% of their notional amount. The FTT would be due if at least one party to a transaction is based in the EU.

Reportedly, France, Germany, Austria, Spain, Greece, Poland, Italy are pushing for the idea, but some of them appear to have different views if the proceedings from such a tax should feed the EU budget.