Sarkozy announces French financial transaction tax

The big news of the day is that French President, Nicolas Sarkozy has announced plans to introduce a 0.1% levy on financial transaction in the country, even if other Euroean states do not follow suit.

In his address, he stated that 

"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".

This is a welcome move by the French premier, showing that there is bite to his bark on economic policy. The tax is to be introduced in August this year although doubts have been raised as to whether the tax will be implimented given that Sarkozy will be fighting a tough election battle in April.

CSM continues to support the campaign for the Tobin tax in the UK in the face of much opposition from the city and coalition government.

Below is a link to the BBC article on the story 

http://www.bbc.co.uk/news/world-europe-16783520