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Transactions Tax Plans Unravel Into 2016 as Governments Clash

  • U.K.'s Osborne threatens legal action, Estonia withdraws
  • Italy's Finance Minister Padoan says text on FTT is vague

Plans for a European tax on financial trades fell into disarray as member states argued about its impact on world markets and clashed over threats of legal action.

Instead of sealing a deal on Tuesday in Brussels after months of preparation, EU governments kicked the proposal to mid-2016 as fresh worries erupted over the economic and political consequences of the levy. The group of countries seeking to introduce the financial-transactions tax said they needed more time to assess the impacts as Estonia withdrew its support and Britain reignited a threat to file a lawsuit should the plan ever materialize.