Schauble Wants EU To Take Global Lead In Introducing Tobin Tax: Report
The European Union must take the lead role in introducing the financial transaction tax to curb speculative trade, German Finance Minister Wolfgang Schauble told the Financial Times.
During the interview, the minister said that in addition to the harmonized monetary policy, Europe needs stronger institutions to oversee the implementation of a commonly agreed finance policy.
He also urged the European leaders to take the next big steps towards a "fiscal union." The implementation of the tobin tax must be accompanied by tougher regulation of big banks and the "shadow" banking sector, such as hedge funds, Schauble told the newspaper.
Even if the UK disapprove on such a tax in the full EU, the Eurozone should press ahead on its own, the minister said. Any failure to reach agreement on tougher financial regulation by the G20 at the Cannes summit this week should also not stop Europe acting alone, he said.
"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 told the daily. On Italy, Schauble said that the country must solve its own problems by cutting the debt and balancing its budget as promised.
Italy still has work to do," he said. "The stability of the euro requires that the big member states must live up to their own responsibility."
The Euro summit last week mounted pressure on Italian Prime Minister Silvio Berlusconi to implement the announced budget cuts swiftly and effectively. In an interview to Corriere della Sera over the weekend, Berlusconi said that the Parliament must understand that the country will continued to get the support from the European Central Bank only if it implements the planned measures. "There is no room for games or tactics."
He said that the current legislature in Italy will last until 2013. "Only I and my government can achieve this reform program for 18 months, which is why there is no way for me to stand aside," Berlusconi told the newspaper.
Interest rates on 10-year Italian bonds rose to a euro-era record on Friday, reflecting market skepticism that if Italy can deliver on its pledge to cut spending and balance its budget by 2013.
The commitments made with the European Union at the summit will be presented on November 9 and 10, Berlusconi told Corriere della Sera.
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