Europe’s plan for an expansive financial transaction tax hit a wall after the top legal adviser to finance ministers concluded it exceeded national jurisdictions, “infringes” on EU treaties and discriminates against non- participating states.

The unusually blunt paper from the EU council legal service deals a heavy blow to a proposal to introduce a €35 billion euro zone levy with global reach.

While the conclusions are non-binding, they are likely to accelerate moves to scale back the design of a common levy. A new version could more closely resemble a stamp duty. Algirdas Semeta, EU tax commissioner, defended his policy on Twitter: "FTT is legally sound and fully complies with EU treaties and international law." – (Copyright The Financial Times Limited 2013)