|Sarkozy drops bank tax proposal|
| French president Nicolas Sarkozy has agreed to drop a plan to help fund a €115bn Greek bail-out with a €50bn bank tax, a significant victory for Angela Merkel, the German chancellor, who extracted the concession at a late night meeting in Berlin ahead of an emergency summit of eurozone leaders.|
The tax plan, which would have raised €10bn a year for five years through a 0.0025 per cent levy on all assets held by eurozone banks, was strongly resisted by Berlin, which saw the plan as taking too long to implement and raise funds, which would have been used for a massive Greek bond repurchase programme.
Thursday, July 21, 2011
Posted by Michele Kearney at 7:47 AM