Franco-German financial transaction tax proposal on Jan 23

14th December 2011, Comments 0 comments

France and Germany will present their financial transactions tax proposal on January 23 with the hope it will be implemented in Europe in 2013, French Finance Minister Francois Baroin said Wednesday.

"I am working with my colleague Wolfgang Schaeuble, the German finance minister, on a proposal that is complementary to that of the (European) Commission," Baroin told lawmakers in the lower house of parliament.

In September, the EU's executive Commission proposed introducing a tax in 2014 at 0.1 percent on share dealings and 0.01 percent on derivatives and other financial products that would raise 55 billion euros per year, to be shared between the EU's central structures and its 27 member states.

"On January 23 we will present the Franco-German contribution to this initiative," Baroin said, adding that Paris and Berlin want to see quick progress made with a final decision by the end of the year so it "goes into force in 2013."

An EU-wide tax is unlikely as London, home to 80 percent of Europe's financial services industry, has signalled its opposition.

France and Germany also failed to have such a tax taken up by the Group of 20 top economies in November, running into opposition from Washington as well as London, but signalled they intended to pursue the issue in the eurozone.

© 2011 AFP

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