French and German leaders support financial transactions tax

For some time French president Sarkozy has supported a financial transactions tax. German Chancellor Angela Merkel has now also expressed her support for such a tax.
 Great Britain however is against such a tax unless it is global in scope. This is not likely as the U.S. opposes the tax.
 Merkel said:“Personally, I’m in favor of thinking about such a tax in the euro zone,” Merkel said. “Germany and France both equally view the financial transaction tax as a correct response.” Last September the European Commission suggested the tax rate be .1 per cent on all bond and equity trades and .o1 per on derivative trades. The Commission calculated the tax would raise 71 billion dollars a year.
 Sarkozy has even suggested that he might be willing to go it alone and impose the tax on France even if others do not join. The French financial establishment is opposed to the tax claiming that it would make France less competitive. For more see this article.