David Jetuah, Accountancy Age, Tuesday 25 May 2010 at 08:50:00

Brussels becomes the latest to call for banks to pay an upfront levy to mitigate financial disasters in the future

EU mandarins are gearing up to make a call for banks to be taxed on their profits so the falllout from financial disasters can be managed more effectively.

The European Union has become the latest to call for a levy on banks after President Barack Obama, former PM Gordon Brown and the IMF all made similar recommendations.

The proposals are set to be unveiled tomorrow by internal market chief Michel Barnier, according to the FT.

It will not be a bailout fund, officials emphasised. The fund would be used to mitigate the effects of collapses in the future.

Further reading:

IMF's banking tax could backfire