Robin Hood tax: What is the Tobin tax?

The British government has been accused by the Germans of the heinous crime of trying to look after British interests.

A senior ally of the German chancellor said they would not get away with it.

The bone of contention is the idea of putting a tax on all financial transactions in Europe, to bail out the eurozone.

Britain, home to Europe's biggest financial centre, would bear the brunt but opposition to the tax is un-European, say the Germans.

The comments will ratchet up tensions between London and Berlin ahead of a meeting between Prime Minister David Cameron and Mrs Merkel on Friday.

Andrew Verity reports for Newsnight.

  • Business