UK and France clash on transaction tax

The two leaders held a 35-minute meeting at the British ambassador’s residence in Washington ahead of the main G8 meeting at Camp David, US President’s country retreat near Washington DC.

On Wednesday 16 May, Cameron expressed hopes that he would find “common ground” with Hollande.

Nevertheless, just before the meeting on Friday 18 May, Cameron told reporters, “On the financial transactions tax, I’m very clear, we are not going to get growth in Europe or Britain by introducing a new tax that would actually hit people as well as financial institutions”.

This comes after Hollande said that Britain is only obsessed with protecting the interests of the City of London and is thus opposed to a European Union-wide transaction tax on financial deals and a fresh push for tax harmonization in Europe.

“I don’t think it is a sensible measure. I will not support it,” said Hollande referring to the EU-wide transaction tax on financial deals.

After his victory over Nicolas Sarkozy in the French presidential election earlier this month, Hollande condemned Britain’s approach to the euro crisis, saying “Britain treats Europe like a self-service restaurant.”

ISH/PKH/HE

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