France and
Germany
agreed that a planned pan-European tax on financial transactions should
cover all derivatives products, a source close to French Finance
Minister Pierre Moscovici said on Wednesday.
President Francois
Hollande and Chancellor Angela Merkel said after a joint meeting of
their two cabinets in Paris that they wanted other EU partners to agree
on such a levy by European Parliament elections in May.
France and its banks
have in the past warned that imposing a transactions tax across the
board of financial products could damage Europe's financial sector. But Germany has in recent days suggested a compromise under which different components of the tax could be phased in over time.
While Hollande and Merkel signalled
their will for the 11 countries who back the tax to conclude a deal on
it by the European elections, it was still not clear how high the final
tax would be and when it would be applied to specific products.
Asked
whether he favoured a phase-in of the tax as suggested by German
Finance Minister Wolfgang Schaeuble - starting with share trades first -
Hollande said such details would be worked out in minister-level
discussions.
"The main
thing is that it happens. If we seek the perfect product, I know there
are some people who will go so deep into details that there will never
be a financial transactions tax. I prefer an imperfect tax to no tax at
all," he said.
Note EU-Digest: every politician
in the European Union should keep in mind that we elected them to defend
the interests of the voters and not only the interests of the
financial, banking industry, or specific corporate interest groups.
Read more: Germany, France back EU tax on derivatives - French source | Reuters