Cannes, 04/11/2011 (Agence Europe) -French President Nicolas Sarkozy said on Friday 4 November after the G20 summit in Cannes that many have joined France in its fight for a tax on financial transactions, namely Germany, the European Commission, Spain, Argentina, the African Union, Ethiopia and the Secretary General of the United Nations. He hoped such a tax would see the light of day next year and that most of its proceeds would be used to fund development policies. He explained that three years ago, only development charities were talking about a tax on financial transactions (FTT), which they called a Robin Hood Tax, but it was now being discussed by world leaders. He said he shared charities' disappointment that other key issues at the G20 summit had been overshadowed by the sovereign debt crisis. On Thursday, Sarkozy said that an FTT was feasible technically, vital financially and unavoidable ethically.
In their final statement, the G20 leaders say: “We also agree that, over time, new sources of funding need to be found to address development needs and climate change. We discussed a set of options for innovative financing highlighted by Mr Bill Gates. Some of us have implemented or are prepared to explore some of these options. We acknowledge the initiatives in some of our countries to tax the financial sector.” Nicolas Sarkozy argues that it is not good enough to say that we have to wait until everyone agrees.
The president of the European Commission, José Manuel Barroso, briefed the G20 on the draft legislation unveiled by the European Commission in September 2011 on the introduction of an FTT, saying on Friday that more had to be done for the poor. He made no attempt to hide the fact that there was disagreement about this. Sarkozy said that some countries were highly opposed to the idea. Within the EU, it is known that the United Kingdom and Sweden do not want any tax on financial transactions.
The United States seems to agree on the end, but not the means. Obama did not mention the question at his press conference. Mike Froman, one of Obama's financial advisors, said on Thursday: “The American President made it clear that he shares the objectives that Chancellor Merkel and President Sarkozy have in ensuring that the financial sector contributes an appropriate share to the resolution of crises”. Sarkozy welcomed Obama's openness to the idea of making the financial industry pay. The US prefers the idea of a financial responsibility fee levied on major financial institutions.
On the fringes of the G20, many organisations from the Northern and Southern hemispheres, like the French group Coordination Sud, Congad of Senegal and the Euro-Asiatic People's Forum, called for tangible measures, including an FTT, to reduce the negative impact of the economic and environmental crises on vulnerable people. (MB/transl.fl)