The European Union will have to go it alone on a bank tax after leaders of the G20 group of nations failed to endorse it at their recent summit.

A communiqué released after the talks in Toronto, Canada, says that banks should make a "fair and substantial contribution" to paying back state aid and guarding against future crises, but failed to go into any detail on how this should be done.

Malta was originally against this banking levy proposal arguing it was not necessary for Malta's banks since they withstood the financial crises and did not need any grants from the state. However, Malta adopted a more conciliatory position during an EU summit which discussed this proposal earlier on this month with Prime Minister Lawrence Gonzi stating that Malta would go along with the other member states to impose this tax "if this is introduced on a global level so that there will be a level playing field."

Despite the G20's non -committal on the introduction of this levy, the European Parliament's Socialist Group is now urging member states to take the lead and introduce two taxes - on banks and on financial transactions - despite the opposition from non-EU states.

"The G20 summit in Toronto made a lot of noise for nothing," Socialist group leader Martin Schulz said. "The EU should, nevertheless, take the lead and go ahead with a banking tax and a financial transaction tax, despite opposition from its partners."

EU leaders signed up to a system of levies and charges at a summit in Brussels two weeks ago. Britain, France, Germany and Sweden have already announced taxes of their own, although they disagree about where the money should go: ring-fenced for resolution funds (Germany and Sweden) or ploughed back into state coffers to fund the deficit (France and Britain).

Both the International Monetary Fund (IMF) and the Financial Stability Board back bank taxes and resolution funds - especially for large cross-border banks like HSBC - and internal market chief Michel Barnier is to release a communication in the autumn setting out the EU's plans. Legislation is to follow next year.

Meanwhile, G20 leaders dropped a 2012 deadline for banks to hold more cash in reserve, saying instead that changes should be "phased in" so as not to harm the recovery. The Basel Committee on Banking Supervision is to publish its new guidelines on capital requirements (the so-called Basel III rules) in November.

European Commission President José Manuel Barroso was still able to claim victory after the summit, however, as all 20 nations signed up to slash budget shortfalls in half by 2013, and curb or stabilise excess borrowing by 2016.

"The EU came to Toronto with a clear agenda," he said after the meeting. "The summit's result reflects widespread convergence around Europe's approach."

The commitment comes despite some very public diplomatic scuffles ahead of the meeting over how much emphasis to place on austerity, with the US President and Treasury Secretary both calling for a focus on growth, fearing Europe is pinning its hopes of recovery on buoyant American demand.