French President To Introduce Financial Transactions Tax

According to the BBC, French President Nicolas Sarkozy intends to introduce a 0.1 percent financial transactions tax in August, regardless of whether or not other countries do the same. “What we want to do is create a shockwave and set an example that there is absolutely no reason why those who helped bring about the crisis shouldn’t pay to restore the finances,” Sarkozy said, estimating that the tax will raise about $1 billion Euros. According to the Center for Economic and Policy Research, a transactions tax in the U.S. could raise tens of billions of dollars per year, while reducing dangerous market speculation and increasing productive investments.