France, Germany push EU on global bank tax

9th July 2010, Comments 0 comments

France and Germany want the European Union to keep up the fight for a global bank tax even though the proposal was rejected by the Group of 20, according to a letter released Friday.

The French and German finance ministers wrote to Belgium, which holds the rotating presidency of the European Union, to say that such a global tax was "possible and necessary."

"Even though a consensus has not been found, we are convinced that the European Union must continue to try to create such a tax," wrote Christine Lagarde of France and Wolfgang Schaueble of Germany.

Britain, France and Germany had agreed to push for such a tax at last month's G20 summit in Canada but leaders in the end left it to each country to choose whether to impose the levy.

The French and German finance ministers said the proposed tax, designed to generate funds with which to avoid a repeat of the global financial crisis, should be discussed at an EU meeting in Brussels at the end of September.

© 2010 AFP

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