France Announces Financial Transaction Tax

Today French President Nicolas Sarkozy announced he wants to introduce a financial transaction tax in France at a rate of 0.1 percent. This comes after Sarkozy stated earlier this month that France would implement the tax if approval at the EU level was not being achieved. Sarkozy also wants to raise France's value-added tax anywhere from 1.6 percent to 21.2 percent. The proposed raise of the value-added tax is meant to boost the economy of France by lowering labor costs making French companies more competitive. This comes as the French presidential elections are looming in April. This may have some influence on Sarkozy's proposal as well as the fact that the European Union has not been quick to approve the financial transaction tax.

http://www.dw-world.de/dw/article/0,,15701290,00.html

By Matthew Draper