French FM Sketches Contours Of FTT

by Ulrika Lomas, Tax-News.com, Brussels

25 January 2012

French Finance Minister François Baroin has recently confirmed government plans to impose a financial transactions tax on shares, securities and derivatives.

Underscoring that the base for the government’s proposed tax is to be much wider than that of the country’s former stock exchange tax, which was abolished in 2008, and which was merely applied to share transactions, the minister nevertheless provided his assurances that government bonds would remain unaffected by the proposed levy.

Baroin revealed that the concrete timeframe for application of the planned tax would be considered during forthcoming parliamentary discussions in February. Talks would also be held with Germany, the minister added.

Alluding to the fact that a European directive on the tax is currently being drafted, the French finance minister acknowledged that the UK and Sweden remain opposed to such a levy, while underscoring that the government’s aim is for the levy to be adopted by the 17 eurozone member states, or possibly by more countries if there is the support.

Baroin and his German counterpart Wolfgang Schäuble are due to meet shortly in Paris to discuss plans for a financial transactions tax and for a common corporate tax in France and Germany in 2013.

The ministers aim to submit their proposals to German Chancellor Angela Merkel and to French President Nicolas Sarkozy in the form of a Green paper.

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