The latest legal threat to the European financial transaction tax proposal could spur member states to act alone and introduce their own national taxes, which some claim could be more detrimental to the market than an EU-wide levy.

Following an opinion paper dated September 6, the Council of the European Union's legal service has thrown into doubt the prospect of the European FTT, which is being pursued by 11 of the region's 28 member states on the basis of 'enhanced cooperation'.