GERMANY: Rules to impose a levy on banks must be embedded in a European structure, German Finance Minister Wolfgang Schaeuble says during visit by French Economy Minister Christine Lagarde

Record ID: 559931

  • Title: GERMANY: Rules to impose a levy on banks must be embedded in a European structure, German Finance Minister Wolfgang Schaeuble says during visit by French Economy Minister Christine Lagarde
  • Date: 1st April 2010
  • Summary: BERLIN, GERMANY (MARCH 31, 2010) (REUTERS) FRENCH ECONOMY MINISTER CHRISTINE LAGARDE AND GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE ARRIVING FOR NEWS CONFERENCE PHOTOGRAPHERS TAKING PICTURES / SCHAEUBLE AND LAGARDE SEATED LAGARDE JOKING WITH SCHAEUBLE REPORTERS SEATED (SOUNDBITE) (German) GERMAN FINANCE MINISTER, WOLFGANG SCHAEUBLE SAYING: "The regulation of financial markets and the steps decided by the German government this morning are embedded in a whole package of measures which we agreed on on an international level -- especially within the G20, on a European and on a national level. We continue to draw our lessons from the financial crisis." PHOTOGRAPHER TAKING PICTURES REPORTERS AND OFFICIALS SIDE SHOT OF LAGARDE SPEAKING PHOTOGRAPHER TAKING PICTURES (SOUNDBITE) (French) FRENCH ECONOMY MINISTER, CHRISTINE LAGARDE SAYING: "We fully agree on the objectives, meaning the responsibility and the taxation to prevent systemic risks. We also agree fundamentally on the international nature that this mechanism should have." REPORTERS TAKING NOTES (SOUNDBITE) (French) FRENCH ECONOMY MINISTER, CHRISTINE LAGARDE SAYING: "I totally share the German government's objective and determination as presented by my colleague Wolfgang Schaeuble. The concern of all of us is to make clear the responsibilities and predict systemic risks. The concern of all of us is to prevent 'shadow banking.' So we must ask ourselves how to prevent (gestures) tax evasion. That's why we are discussing spheres of activity." REPORTERS SEATED / PODIUM
  • Embargoed: 16th April 2010 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: Finance
  • Reuters ID: LVA6BN6P0PRUC62MN892LS9PUFL1
  • Story Text: Germany and France said on Wednesday (March 31) bank levies should be imposed internationally to ensure a level playing field and called for national bank restructuring rules to be embedded in a European framework.
    France is the latest country to seek a levy on bank balance sheets to fund bank bailouts, after Germany earlier this month announced plans to introduce such a charge.
    "We agree fundamentally on the international nature that this mechanism should have," the French Economy Minister Christine Lagarde told a joint news conference with German Finance Minister Wolfgang Schaeuble in Berlin.
    The move raises the chances of the G20 group of countries agreeing to a bank levy at their summit in June.
    Earlier on Wednesday, the German cabinet had agreed new bank restructuring rules, including the introduction of a levy, which aim to reduce "moral hazard", or banks assuming they will be bailed out with taxpayer money in a crisis.
    In a joint statement, France and Germany said the new proposals were a "useful contribution to the international debate on how to mitigate systemic risk", and such national rules needed to be integrated into a European framework.
  • Copyright Holder: REUTERS
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