Britain and France urged have world leaders to impose a tax on bankers' bonuses and consider a tax on financial transactions.
In a joint call as they headed for an EU summit, Prime Minister Gordon Brown and President Nicolas Sarkozy stressed the ‘urgent need’ for a new deal between banks and society.
‘We propose a long term global compact that will encapsulate both the responsibilities of the banking system and the risk they pose to the economy as a whole,’ they wrote in the Wall Street Journal newspaper.
Various proposals have been put forward and ‘deserve examination,’ they said.
‘They include resolution funds, insurance premiums, financial transaction levies and a tax on bonuses.
‘Among these proposals, we agree that a one-off tax in relation to bonuses should be considered a priority due to the fact that bonuses for 2009 have arisen partly because of government support for the banking system.’
Britain announced Wednesday it was slapping a one-off 50% tax rate on bonuses above £25,000 (€27,600) to recoup cash spent saving the financial sector during the crisis.
France's Les Echos financial daily reported Thursday that France wanted to follow Britain's lead and slap a 50% tax on bank bonuses over €27,000.
A Sarkozy aide said that the essence of the report was correct but said ‘the exact format has yet to decided’ for the tax.
The Brown-Sarkozy article came ahead of an EU summit in Brussels starting today, and appeared designed to counter suggestions of a simmering row between the two countries over EU financial reform.
