Germany ready to go it alone on transaction tax: minister

12th October 2011, Comments 1 comment

Germany is prepared to introduce a tax on financial market transactions on its own if it is unable to bring its European partners on board, Finance Minister Wolfgang Schaeuble said on Wednesday.

Asked about financial market regulation, Schaeuble said: "Of course it would be better on a global level and if it doesn't work at a global level, then at a European level, and if that doesn't work, then at a national level."

"That goes also for a tax on financial transactions."

In September, Europe went ahead with landmark proposals to tax the financial sector, ignoring US opposition in a move that also provoke grumblings in London which fears capital flight from the City.

The idea of a tax on financial market transactions has been pushed hard by German Chancellor Angela Merkel and French President Nicolas Sarkozy.

The plan will likely be discussed at a summit of all 27 European Union heads of state and government at an October 23 summit, and also be put to a summit of G20 leaders in Cannes on November 3-4.

European Commission president Jose Manuel Barroso has said the tax could generate around 55 billion euros ($76 billion) a year.

© 2011 AFP

1 Comment To This Article

  • Alastair McKenzie posted:

    on 14th October 2011, 13:21:53 - Reply

    Glad somebody knows what they are doing. However the primary reason for imposing a transaction tax is not to raise revenue. It is to curb the excesses of the "spivs and gamblers" and their high-frequency trading systems before they cause another financial meltdown.