French President Nicolas Sarkozy has announced plans to introduce a tax on financial transactions.
The 0.1% levy will be introduced in August regardless of whether other European countries follow suit.
The tax is part of a package of measures set out by the president to promote growth and create jobs.
Mr Sarkozy faces a presidential election in April, but is currently trailing in the opinion polls behind his Socialist rival, Francois Hollande.
In an interview with French television, Mr Sarkozy said he hoped the tax would push other countries to take action.
“What we want to do is create a shockwave and set an example that there is absolutely no reason why those who helped bring about the crisis shouldn’t pay to restore the finances,” he said.
“We hope the tax will generate one billion euros ($1.3bn, £0.8bn) of new income and and thus cut our budget deficit.”
Mr Sarkozy gave no further details on the tax, but a government source later told Reuters news agency it would target shares and not bonds.
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In an interview with French television, Mr Sarkozy said he hoped the tax would push other countries to take action.
“What we want to do is create a shockwave and set an example that there is absolutely no reason why those who helped bring about the crisis shouldn’t pay to restore the finances,” he said.
LOL. Translation… “Having shot himself in the upper humerus in front of a gaping crowd, PM Sarkozy moved the gun to his head, promising ‘further pushing’ in future if action is not immediately taken by his audience.”
The white coated guys with the butterfly nets were spotted only blocks away….
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Idiots. Don’t they know that they are not taxing the financial institutions but instead every single citizen that owns stocks or funds? Why don’t the citizens understand that what is actually being taxed is there retirement accounts?
They’re beginning to close the financial transaction loophole in their tax laws.
What loophole is that?
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Anything that is not taxed is a loophole 🙂
LOL! true!
Good details! I have been seeking for things such as this for a time now. Thanks!