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HIGHLIGHTS-EU finance ministers to discuss transactions tax

LUXEMBOURG, Oct 9 (Reuters) - - European Union financeministers meet in Luxembourg on Tuesday to discuss issuesincluding plans for a financial transactions tax among a coregroup of countries and progress towards setting up a singlebanking supervisor for the region.

Following are comments from ministers and other officialsahead of the talks:

DUTCH FINANCE MINISTER JAN KEES DE JAGER

"The Netherlands is not in favour of a financialtransactions tax. We are even reluctant about introduction inother countries."

On banking union:

"We should do it step by step with proved, effectivesupervision, so not fixed on the calendar, but fixed on thesubstance."

AUSTRIAN FINANCE MINISTER MARIA FEKTER On financial transactions tax:

"We will have a discussion and we will try to convinceothers, because I think this is a stabilising measure and itwould create funds for joined European safety nets, such as forexample the deposit insurance scheme or the resolution of banksto reduce debt. I don't want to ask the Austrian tax payer formoney for that, nobody in Austria would understand if we had tosecure the deposits of the Cypriots. There should be a newsource (of funds) and this could be a good argument."

(Reporting by Leigh Thomas, Annika Breidthardt, Eva Kuehnen andRobin Emmott in Luxembourg)

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