Sarkozy's Gambit Throws Wrench in EU's Financial Transaction Tax Debate

President Sarkozy has announced that France will enact a 0.1 percent financial transaction tax from August.

France’s president Nicolas Sarkozy yesterday announced a financial transaction tax (FTT) to be implemented solely in France in August. The announcement comes shortly after Standard & Poor’s downgraded the country’s credit rating from AAA to AA+, and just a few months before a presidential election in April in which Sarkozy could be challenged by the resurgent Socialist party under Francois Hollande.

The FTT proposal levies a 0.1 percent tax on share purchases on the Paris exchange, targets high-

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