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France and Germany push controversial Tobin tax

France and Germany push controversial Tobin tax
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The idea of taxing financial transactions has resurfaced with both Paris and Berlin agreeing such a levy in the EU should be imposed.

France, in particular, says it’s prepared to go it alone on a so called Tobin Tax. The European Commission proposed an EU wide deal last year. But with Britain dead set against the idea, some officials in Brussels are worried the controversial tax could split the bloc.

Greek MEP Anni Podimata, an advocate for some kind of levy on financial transactions told euronews:

“I have a lot of reservations towards the French unilateral move because one of the basic arguments in order to promote the introduction of such a tax at EU level was the necessity to work against the fragmentation of the internal market of financial services in the EU.”

The UK, home to Europe’s biggest financial service sector, has said it will veto an EU-wide tax. It is pushing for a global levy, arguing the current proposals will scare off traders. If an EU-wide deal can’t be agreed, France and Germany now appear determined to push for a eurozone one.