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Europe favours taxing financial transactions worldwide

brussels bureau

Europe favours taxing financial transactions worldwide


The European Union’s leaders have urged the International Monetary Fund to pursue a global tax on financial transactions to limit the risk of another economic crisis. After an EU summit, Brussels said it makes sense that this sector should logically help repair damage caused by rash behaviour although it would not be fair that some impose heavy burdens and others do not.

British Prime Minister Gordon Brown backed this. He said: “Global taxes will not be introduced unless all global financial centres are able to come behind them but I believe there’s growing support for that.”

Washington has opposed calls for a tax on financial transactions.

French and British proposals to tax bankers’ bonuses heavily won limited support at the summit.
The meeting’s conclusions underlined the need for “sound and effective” financial sector pay.

This signalled a desire to address voters’ outrage over a return of the big bonus culture in the banking sector so soon after it was bailed out with tax payers’ money.

The IMF is already considering how to limit risk in the financial system. Brown last month told a summit of the Group of 20 developed and emerging nations the proceeds from such a tax could be used to fund future financial bailouts.

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