The move has widely been welcomed by the City, but if it does make its way into EU law – and indeed in the US as well – what will its impact be on trading?

Nicknamed after Nobel prize-winning economist James Tobin, who suggested the introduction of a small tax on currency market transactions in the 1970s, the modern-day tax would largely discourage high frequency trading in Europe and generate funds for the debt-ridden EU.

Mr Cameron chose to veto the tax during European crisis talks in early December, claiming that it would drive business out of the UK and towards America and Asia. It would have seen a 0.1 per cent levy on shares and bond trades and 0.01 per cent on all derivatives.