Thursday, January 5, 2012

French renew attack on City by insisting new ‘Tobin tax’ WILL be implemented before end of 2012

Threat: Jean Leonetti (Pictured), France's minister for Europe, says the French and Germans have already decided to introduce a financial transaction tax on the City of London.

The French yesterday revived their attack on the City of London – insisting that a financial transaction tax will be in place by the end of the year despite British objections.

Jean Leonetti, the country’s minister for Europe, said the French and the Germans have already ‘decided’ on the introduction of the levy, and that other countries would be forced to fall into line.

But last night Number 10 hit back, saying David Cameron would be forced to wield a second veto if French President Nicolas Sarkozy and German Chancellor Angela Merkel do not back down.

Paris and Berlin want to impose the financial transactions tax to raise money for bailouts of faltering Eurozone economies.

But the Prime Minister says the levy would cripple the UK’s financial services industry, which employs two million and accounts for 10 per cent of gross domestic product. Read More