Some big news from the Merkozy press conference happening right now.
French President Nicolas Sarkozy has expressed plans to introduce a “Tobin tax” in Europe: This means taxes on financial transactions, which is something the banks will hate.
Obviously we need details, but this is not minor news if it’s carried forth.
On the surface, we’d expect banks to scream bloody murder, but given that the whole point of this ongoing bailout exercise is to protect banks, it’s hard to imagine this being too damaging ultimately.
Nobel Laureate economist James Tobin was the first to propose this idea, originally envisioning this as a tax on currency transactions.
Full coverage of the press conference here.