Christine Lagarde supports a tax on banks
March 24, 2010 – 12:58 pmThe economy minister, Christine Lagarde, expressed support Wednesday for the introduction in France of a tax on banks whose proceeds would be used in case of bankruptcy of a financial institution, more or less following the German example.
Interviewed on Radio RMC whether she favored, Ms. Lagarde said: "In principle the tax, yes, of course, but" not necessarily exactly like the Germans. "
Ms. Lagarde, "the whole question is what will be the amount of this tax and how it affects: are we actually a sort of insurance fund bankruptcy or are we affects the state budget? ".
Because "they are still states who are forced to come to the assistance of institutions," she argues.
The German government agreed on a tax credit which should feed into a relief fund to the tune of one billion euros per year.
The principle should be adopted Wednesday, March 31 during a Cabinet which shall participate Christine Lagarde.
"This idea that we are working in France for several months, we have discussed with members of the International Monetary Fund.We asked Dominique Strauss-Kahn (director of the IMF, editor's note) to us with proposals, "she recalled.
The IMF must indeed make public its recommendations in April on a charge to "recover the public money that has been used to support banks and other financial institutions during the crisis."
U.S. President Barack Obama announced January 14 a draft tax of fifty major banks to allow the state to recover up to 117 billion dollars.
La France has introduced its part a tax on bonuses of traders whose government would affect the majority of the proceeds to the guarantee fund deposit. It will eventually be used to finance SMEs.
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