They call on French and German leaders to also take the opportunity of the European Summit on June 17th to promote the implementation of the tax on bank transactions throughout Europe.

 

By supporting the tax on bank transactions at the G20, Nicolas Sarkozy and Angela Merkel align themselves with civil society; over 150,000 citizens of the world have signed the petition demanding that the G20 implement this tax. The petition will be given to the leaders of the G20 on the 25^th of June in Toronto. In the past, this alignment of European leaders and civil society brought about great international advances despite opposition from China and the United States. This was the case for instance for the international treaty which prohibited the trade of land mines in 1997.

 

More than ever, in this period of financial crisis, the fight against hunger, poverty, pandemics and climate change demand urgent action from world leaders. At the same time, in Europe and developing countries, the financial crisis has forced governments to drastically reduce their budget deficits. A tax on bank transaction would generate hundreds of millions of euros a year and would allow the international community to not renege on their commitments regarding development and climate change.

 

Over the last few months, many leaders, particularly in Europe have expressed their approval of the tax on bank transactions. The leadership of the German and French heads of state at the G20 and EU summits is crucial in convincing the rest of the international community that this tax should be implemented.

 

Nevertheless, French and German NGOs remind us that the EU can unilaterally tax financial transactions, should G20 countries like China or the United States obstinately refuse the implementation of the tax on bank transactions. Taiwan, for example, already has a unilateral tax on all of its financial transactions. The EU summit taking place on the 17^th of June must commit itself to implementing this tax in the European Union even if the G20 countries do not come to an agreement about it.

 

Governments all over the world managed to get hold of billions of euros to save the banks and the financial system. In a desperate attempt to reimburse speculators, governments are reducing spending on aid to poor countries and actions on climate change when they should be taxing the speculators who are responsible for the crisis.