Nicolas Sarkozy is President of France. And France has presidential elections in 4 months. Sarkozy does not do so well in the opinion polls. So why not make some last minute ‘brave’ proposals? One of them is the introduction, in France, of a Financial Transaction Tax, without waiting for other EU countries.

Of course, he has to ask the authorization of Ms Merkel, we will see tomorrow what her answer was. And at any rate, the FTT seems to be limited to a stock exchange stamp duty, of the kind existing in the UK. Shares would be taxed at 0,1 %, derivatives are not sure yet, and bonds will be excluded. The British stamp duty is 0,5 %. ‘Paris Europlace’ the organization which represents all actors on the Paris Stock Exchange is far from happy and threatens to leave the French capital. Yes, UK taxes are higher, but profits are also much higher in London. And those who will have to pay the tax are those who are not responsible for the crisis …

To be followed.