Head of European Commission backs calls for tax on financial transactions which Tories believe would damage UK economy.

Despite Gordon's claims to the contrary, nobody seems to believe him that Britain is "best placed to weather the global financial turbulence", not the currency markets, not foreign investors and nor now the European Commission. The FT reports that the Commission is forecasting EU growth will slow from 1.4% cent this year to just 0.2% in 2009, while the eurozone economy would expand by 1.2% this ye...

George Osborne: “The Commission itself points out that a European financial transaction tax would have a serious impact on European growth. It would hit the UK economy, it could reduce European GDP by up to 3.5pc. The Commission takes the central view it would only reduce European GDP by 1.76pc. That is their central estimate

The Telegraph reports that the European Commission yesterday unveiled how a potential EU ‘bank tax’ would work and said the 27-member bloc would introduce the tax unilaterally, should other countries refuse to implement their own measures. The Commission document said, “Actions by the EU alone would be less effective but could be considered, particularly if there are good reasons...

The Times reports that the European Commission yesterday initiated legal action against the Government after declaring that UK laws guaranteeing data protection were “structurally flawed” and well below the European standard. A Commission statement said that Brussels had sent several letters to the British authorities since last July asking why the Government had not taken action again...

Government plans to cut the UK's budget deficit are not ambitious enough, a European Commission report will warn this week.

In a speech to the European Policy Centre yesterday, EU Monetary Affairs Commissioner Olli Rehn said that the Commission is planning on presenting plans next month which would see eurozone governments submit their national budgets to the EU for approval, before they were sent to national parliaments.

The European Commission unveiled yesterday its proposal for the next long-term EU budget, running from 2014 to 2020. Despite the UK, France and Germany demanding that EU spending rise by no more than inflation, the Commission’s draft envisages a 5% increase from the current budget period.

The European Commission has said it expects the UK's retail distribution review to be compatible with Mifid II, enabling the UK to continue with its commission ban proposals

European Union countries should hand the European Commission powers to coordinate gas flows in the 27-member bloc in the event of a gas crisis, according to a draft Commission report.