News

Sarkozy has been seeking European-wide support for such a tax, but decided to go ahead with the proposal in part of a package of job-creating and growth-stimulating measures. The idea of a EU - wide financial transaction tax, supported by President Sarkozy along with German Chancellor Angela Merkel, was a major reason behind British Prime Minister David Cameron’s veto of EU treaty changes in December. According to reports, Sarkozy stated in an interview with a French television station that his aim with the tax is to “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." On the national level, he hopes “the tax will generate one billion Euros of new income and thus cut our budget deficit." Without disclosing many details, Sarkozy has stated that his government has found a way to tax transactions related to France even if they do not happen there, helping to preserve French finance jobs. A government source told Reuters that it would target shares, but not bonds. The French banks have stated their opposition to a unilateral financial transaction tax, but Sarkozy hopes the other European nations will soon follow suit.