Europeans float bank tax
22 June 2010 | 
Author: Professor |
CBC News 22 June, 2010
Britain, France and Germany on Tuesday committed themselves to adopting a bank tax, a measure Canada has opposed.
The proposal comes ahead of this week's summits of G8 and G20 nations, to be held in Huntsville, Ont., and Toronto.
The levies would raise funds to shield taxpayers from the cost of bailing out banks during a financial crisis. The three finance ministries are proposing other countries join them in enacting the tax.
In a joint statement, the three countries say financial institutions should make "a fair and substantial contribution" to reimbursing governments for bailing out banks in the wake of the global economic crisis.
Canadian Prime Minister Stephen Harper has repeatedly said a bank tax is not necessary for Canadian financial institutions, given the strength and stability of banks here.
A statement released by Berlin's Finance Ministry said the taxes imposed by the three European countries would all have the same goal.
"All three levies will aim to ensure that banks make a fair contribution to reflect the risks they pose to the financial system and wider economy, and to encourage banks to adjust their balance sheets to reduce this risk," read the proposal.
Germany declared its intention for such a tax in March and is drafting legislation to go to parliament before the summer recess, while the U.K.'s Treasury chief George Osborne announced its version on Tuesday. France said it will present the details of its bank tax in the coming budget.
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