Sarkozy backs tax on financial transactions

French President Nicolas Sarkozy said on Monday that France “is in favour of a tax on financial transactions” which he declared was the best way of providing “new resources for development”. During a press conference, Sarkozy set out the economic agenda for his presidency of the G20 group of economic powers.

Reuters

“France considers that this tax is ethical, given the financial crisis that we have survived, useful for discouraging speculation and an efficient way of finding new resources for development,” he said.

Sarkozy discussed the role of the International Monetary Fund’s role in world finance saying that they should carry out “surveillance” of international capital transactions.

“We propose to the G20 to develop a code of conduct for managing capital flows and ultimately France’s conviction is that a reform of the IMF’s statutes is desirable,” the president said in the televised address.

There were also comments directed towards China, Russia and other allies.

Sarkozy said he would meet Chinese premier Hu Jintao in March and invited Britain, Germany and Russia to support his efforts to police financial transactions, stabilise currency markets and steady the raw commodity marketplace.