EU banking levy proposals to be unveiled tomorrow
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Plans that would see European Union countries impose a levy on banks, to be paid into national funds in order to insure against another banking crisis, are to be outlined tomorrow.
According to a report in the FT, EU internal market commissioner Michel Barnier is due to announce the proposals tomorrow, with a view to implement them next year.
The proposals would see EU countries pay the levy into a national fund to stop a future crisis spreading throughout the financial system.
However, the proposals would have to be ratified by EU member states and the European Parliament before they are implemented.
According to the report, the funds could be used to buy bad assets or provide guarantees to participating countries.
Several countries have supported the idea of a universal banking levy.
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