Cameron vows to block EU-wide Tobin tax
London - British
Prime Minister David Cameron said for the first time on Sunday he would veto a
European-wide financial transaction tax unless it was imposed globally,
deepening a confrontation with European Union heavyweights France and Germany.
He said France should be free to go it alone and introduce a
financial transactions tax if it wished.
Paris and Berlin have been pushing for an EU-wide tax of
financial transactions but Britain has strongly resisted, fearing it will
damage the City of London, a global financial centre where much of the tax
would be raised.
Cameron’s threat to block the tax comes after he angered EU
partners last year by vetoing a new EU treaty on greater fiscal integration in
the eurozone that was aimed at defusing the euro debt crisis. Critics said his
move risked leaving Britain isolated from the other 26 EU countries.
“The idea of a new European tax when you're not going to
have that tax put in place in other places, I don’t think is sensible and so I
will block it,” Cameron said in a BBC interview.
“Unless the rest of the world all agreed at the same time
that we are all going to have some sort of tax then we are not going to go
ahead with it,” he said.
EU-wide tax measures require approval from all 27 member
French President Nicolas Sarkozy vowed on Friday to push
ahead with a new tax on financial transactions, also known as a Tobin tax, even
without France’s EU partners, in the face of stiff British resistance.
“If the French themselves want to go ahead with a
transaction tax in their own country, then they should be free to do so,”
He suggested other European leaders should copy taxes that
Britain has on banks and share transactions.
“I would say to these other European leaders if you want to
do what Britain has, we’ve got a bank levy so that the banks contribute
properly, we have stamp duty on share dealings, you can do those things,” he
The EU’s executive European Commission formally adopted
plans last September for a financial transaction tax.
Under the plan, stock and bond trades would be taxed at the
rate of 0.1%, with derivatives taxed at 0.01%.
The idea will be discussed when Sarkozy and German
Chancellor Angela Merkel meet on Monday in Berlin and at a meeting of the
European Council in Brussels on January 30.
While France may push ahead alone, Germany and Italy have
stuck to the idea of an EU-wide tax.
Cameron’s decision to veto the new EU treaty won him praise
from eurosceptics on the right of his Conservative Party and brought him a
boost in the opinion polls, but angered his pro-European junior coalition
partners, the Liberal Democrats.
Britain’s Deputy Prime Minister Nick Clegg, the Liberal
Democrat leader, hosts a meeting of his liberal allies from around Europe in
London on Monday to promote his agenda of re-engagement with the EU after
Cameron's treaty veto.
"Critics said his move risked leaving Britain isolated from the other 26 EU countries." Wait, what? This move HAS isolated Britain from the rest of the EU, there is no 'risk' about it, it is fact.
Of course Cameron doesn't want a Tobin tax, London is the center of global financial fraud due to its lack of any regulation whatsoever. What will England do without the bankers it has become so grotesquely entangled with?