The European Union (EU) has authorised 11 member states to proceed with the introduction of a financial transaction tax (FTT) through enhanced cooperation, sparking criticism from tax and business experts.

The countries are Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia. The UK was among those that abstained in the vote to accept or reject the measure.

The proposed levy will be raised against transactions between financial institutions, with 0.1% on the exchange of shares and bonds and 0.01% across derivative contracts. A proposal of the details will be put forward by the European Commission on 14 February.