Merkel, Sarkozy Propose Financial Tax To Save Euroland

Posted by Kris | Thursday, August 18, 2011 | | 0 comments »

Germany whom supposely has the most solid financial background amount the EU seems to be shaky herself. Not sure how a few major economic EU countries such as Germany & France going to save their very down-trodden brothers like Spain, Greece who day by day are reaching terminal conditions. This was one of the reasons why England never joined the EU. 

Sad to say this, people can drag you down if one of the members are not strong enough. This is happening to Germany & France. The down-trodden EU members are relying on their big brother and sister to bail them out.

Financial tax is not a good new in a weakened economy. Although the news article highlight that it will slow down speculation. IMHO, now they need speculation just to drive the economy forward especially on the weak property prices in Euroland. The place to drive speculation down is rightly Asia aka HK, China.

I don't EU can easily print more money like the US as this is requires a collective group action and decision. Slow to make decisions, and any wrong move could burn the entire forest instead of a single tree. This is the burden of joining EU.

Thus, the US DJIA is on a downtrend today.

European banking and exchange shares tumbled, led by Deutsche Boerse AG (DB1) and Barclays Plc (BARC), after the leaders ofGermany and France proposed a tax on financial transactions.
Deutsche Boerse, the German stock exchange operator that is buying NYSE Euronext, dropped 5 percent to 41.10 euros in Frankfurt trading, while Barclays, Britain’s second-biggest bank by assets, slid 4.2 percent in London. The Bloomberg Banks and Financial Services Index declined 1.1 percent.
German Chancellor Angela Merkel and French President Nicolas Sarkozy announced yesterday that they plan to resubmit a financial-transaction tax, which the European Union rejected in 2010. The nations’ finance ministers will meet at the start of September to discuss the proposal, the French finance ministry said in a statement today.