The Financial Times is reporting that Nicolas Sarkozy, the centre-right candidate to replace Jacques Chirac, is to push for a European tax on “speculative movements” by financial groups, such as hedge funds. This is to happen if he wins this year’s French presidential elections.
Sarkozy has spoken of his plans to cut taxes, reduce state spending and make France work longer. His plans to tax financial flows is expected to cause consternation amongst US and UK financial groups, as well as some of the French business community.
Sarkozy refers to himself an economic liberal which makes him popular with US and UK officials. He has also promised to cut the French tax burden by €68bn over 10 years and make reform of the state, if he gets elected in April.