France - G20 - 
Article published the Friday 04 November 2011 - Latest update : Saturday 05 November 2011

No more tax havens, says Sarkozy as G20 wraps up

French President Nicolas Sarkozy speaking at the G20 summit in Cannes
Reuters/Philippe Wojazer

By RFI

French President Nicolas Sarkozy says tax havens are to be shunned by the international community. The announcement comes at the end of a two-day meeting of G20 countries in the French Riviera resort of Cannes.

 

Sarkozy said 11 tax haven countries had been identified and pointed out Switzerland and Liechtenstein as not doing enough to end banking secrecy.

"We don't want any more tax havens. Our message is clear," he said.

At a summit dominated by the financial crisis facing the eurozone, G20 members also agreed to work on a possible increase in funds for the International Monetary Fund and are set to discuss the introduction of a tax on financial transactions at a summit scheduled for the beginning of 2012.

The French president also said conditions were favourable for an agreement in Greece over an IMF-EU billion-euro bailout to help the debt laden country.

Just ahead of his speech, Athens announced that it would not hold a referendum on the bail-out fund. The fear of a possible Greek departure from the eurozone had seen turmoil on financial markets over the past week.

Dossier: Eurozone in crisis

G20 members also agreed to work on a possible increase in funds for the International Monetary Fund and are set to discuss the introduction of a tax on financial transactions at a summit scheduled for the beginning of 2012.

The French president also said conditions were favourable for an agreement in Greece over an IMF-EU billion-euro bailout to help the debt laden country.

Just ahead of his speech, Athens announced that it would not hold a referendum on the bail-out fund.

The fear of a possible Greek departure from the eurozone had seen turmoil on financial markets over the past week.
 

tags: Economic crisis - France - G20 - Greece - Liechtenstein - Nicolas Sarkozy - Switzerland - Tax
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Comments (10)

Why only target small countries

Sarkozy knows that many of the OECD country benefit from so call tax haven activity. Some marginally commercially viable activities would not happen without the existence of low tax jurisdictions. The US & UK have low tax jurisdictions under their control. In fact there is active tax competition between all the states in the US and provinces in Canada.

No on can explain to me why a countries like Bermuda & Cayman with national budgets of between US$600 & US$800 million with populations of under 60,000 would need tax rates that are similar to a country like France or the USA. Or my home country of Barbados with projected expenditure of around US$1.4 billion would need the same tax rates,

Each of these countries have three basic pillars of their economies, international business, tourism and agriculture. Our economies are actually too small to properly sustain agriculture and manufacturing with no real export potential. So in this view, rather than exploit what little advantage we have were to stay poor and a playground for those for the OECD countries.

These are the countries that held us as colonies, extract all the wealth they could during the colonial period and then gave is independence. After that came the low interest loans from the World Bank to build the infrastructure they never did and when we start to grow and compete, graduate us from the World Bank facilities and tell us we have become to tax competitive with them.

tax havens and Greece

Greece's most successful industry is shipping. Most of its ships are registered in Liechtenstein. So are most other ships, shippers have to stay competitive. The Euro countries now have to bail out Greece. In return they get cheaply shipped imports from Asia. (it cost $2.- to ship a DVD player from there). Low import prices reduce their employment. It all works out wonderfully

France provides military

France provides military protection to Monaco, the biggest tax haven on earth. This is a joke.

grammer troll

set to discuss the introduction of a tax on financial transactions at a summit scheduled for the beginning of 2012.

must be important
MAKE IT IN ALL CAPS

"No more tax havens, says Sarkozy as G20 wraps up"

The G20 press conference was a sick joke!!

French President Nicolas Sarkozy wants action against the tax havens!?

Why does he not recommend action against the super rich and the corporations who use and abuse tax havens?! Is it because he and his ilk are beholden to the super rich and the corporations?

Does it cross his befuddled mind that he and his ilk have been doing the bidding of the super rich and the corporations while mouthing platitudes to the Ordinary Joe for decades? Well! Now those whose bidding was being done for decades have leveraged and hedged their bets one too many times and the People of the World are ANGRY.
Politicians need to revisit the facts leading up to the French Revolution & the guillotine as well as the Bolshevik Revolution & various graves!

Tax havens

When President Sarkozy attacks tax havens you have to understand he is speaking in code.

This is all part of his all-consuming hatred of the City of London and its pre-eminence in world financial markets. Once you have cracked that code his rants become very clear and rather pitiful.

If he stops making irrational attacks on low tax jurisdictions perhaps we'll stop pointing out how his grossly inefficient agriculture sector is subsidised to an obscene level by other EC members.

Wise decision.

Obscene?, we could discuse about helping those few who still produce food, or change diet into money paper... mmmmm tasty!

Jack Irvine's comment

Ha! Ha! Ha!

It is quite possible that what you say is true. However, it is ALSO possible that what President Nicolas Sarkozy is saying between the lines is this:

Enough of the Anglo-Saxon Economic Model (Read as City of London and the US 'Mayflower Elite' and exclude the Ordinary Joe in both countries & in the World at large)!!! At the same time do NOT forget that the English word Egalitarian comes from the French word Egalite.

If you work in the City of London and make money from your shady albeit legal activities then your comment is understandable. If NOT, you are a victim of the Cardinal Sin of Jealousy or some other sin which I dare not mention!

Too late.

They've been slowly but surely controlling the UK since November 2007 and the introduction of MiFID. And let's face itn the Euro is all about making sure Germany have a great export economy. We don't need this!

it takes some serious twisted

it takes some serious twisted logic to go from "Sarkozy is opposed to tax havens" to "Sarkozy hates London"

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