October 11, 2016 / 10:06 AM / 10 months ago

Europe drafting transaction tax law but work still needs doing -Moscovici

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LUXEMBOURG, Oct 11 (Reuters) - The European Commission has been given a mandate to draft a financial transactions tax (FTT) law but work still needs to be done on the proposal, the EU's economics commissioner said on Tuesday.

Germany and France proposed an FTT in 2012 as much as a political symbol as an effort to correct the excesses blamed for the worst financial crisis for decades. The tax has been debated ever since, with countries still disagreeing on how to levy it, on which products, for which companies and at what rate.

Late on Monday, the finance ministers of the 10 countries that are considering adopting FTT held a meeting in Luxembourg on the sidelines of a regular meeting of euro zone ministers.

"My services, toghether with the technical group of the participating countries, will now draft a legal text on which we will seek political agreement over the next weeks," Pierre Moscovici said in a statement released on Tuesday.

He said that ministers at Monday's meeting had agreed on some important measures that form "the core engine" of such a tax, but gave no further details.

Moscovici made also clear that "there is still some analysis to be done," speaking to reporters in Luxembourg.

He has set a new informal deadline to reach a deal by the end of 2016. Several deadlines have been missed over the years.

The tax was originally proposed as being applied across the European Union but only Germany, France, Italy, Austria, Belgium, Greece, Portugal, Slovakia, Slovenia and Spain are still considering applying. (Reporting by Francesco Guarascio; Editing by Louise Ireland)

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