Gordon Brown and Nicholas Sarkozy, the French President, put on a united front today as they called for other world leaders to impose a tax on bankers’ bonuses after weeks of simmering tensions between the UK and France.
In a joint article in The Wall Street Journal, the two leaders called for the creation of a “long-term global compact” between the banks and society, and for world leaders to follow Britain’s example in imposing a special tax on bankers’ bonuses as “a priority”.
The two men appeared to call for the introduction of a ‘Tobin tax’, a levy on global financial transactions that would create a fund to help pay for any future crises in the banking sector.
Britain, France and Germany have expressed their support for a transactions tax and the joint piece puts pressure on the US, where opposition to such a tax is softening, to accept the idea.
The two leaders are due to meet today for talks ahead of a European Council gathering, after reports of growing disagreements between the two countries on EU financial reform and fears that France’s coup in securing the appointment of Michel Barnier as the EU Internal Market Commissioner would lead to a regulatory stranglehold being placed on the City.
Mr Brown and Mr Sarkozy write in the US newspaper: “There is an urgent need for a new compact between global banks and the society they serve.
“It is clear the action that must be taken must be at a global level. No one territory can be expected to or be able to act on its own. And if we can find a solution, implemented consistently across the major economies, then we may find a way to ensure that taxpayers do not pay in a systemic crisis for the risks taken on by the banking sector.
