- Oct 28, 2007
- Reaction score
- Political Leaning
The government hopes the bill will gain parliamentary approval before being passed into law in the new year.
The levy should raise about 1bn euros ($1.3bn; £800m) a year.
The UK and France have already committed to introducing bank levies, but so far, there has been no agreement on a global tax
As Germany's Govt has approved draft proposals for a draft law imposing a levy on (domestic?)banks to pay for any future financial crisis - the risks that banks will simply up sticks and set up headquarters in another country start to rise.
Do you think a levy would work and how would you make sure it would work if you did?
Personally, I think the levy should go hand in hand with a requirement that those banks who needed / used the levy keep their HQ in the current country. If (for example) Royal Bank of Scotland chose to move from the UK in response then I would make sure they weren't allowed to operate in the UK.
Where this levy has problems is that some banks (Barclays) didn't use it - though they benefitted from the security that resources were there if needed.