Germany to push ahead with Tobin tax

THE GERMAN finance minister Wolfgang Schäuble has said eurozone countries will push ahead with a financial transaction tax even if the UK vetoes it in the European Union and the G20.

The tax, also known as the Tobin tax, applies a levy on all transactions between financial institutions. The UK has said it would only back the initiative if it was implemented globally.

But Schäuble told the Financial Times that if the tax was not agreed at the upcoming G20 summit in Cannes, then Europe should act alone.

"I am convinced that if we introduce a financial transaction tax in the EU, then the chances of getting a global agreement will increase enormously," he said.

"I would prefer us to reach agreement in the G20. But before we use the G20 as an excuse for doing nothing for a long time, if we cannot reach agreement there, I am in favour of going ahead in Europe."