Tax credit: Paris and Berlin calling for the unity
Five days after the beginning of the G20, which will be held in Toronto, France and Germany called on Monday to unity. In a joint letter to Canadian Prime Minister Stephen Harper, Nicolas Sarkozy and Angela Merkel, calling on the G20 to "remain united to face the new challenges." A call that came after Russia was added, this Monday, the list of opponents to the introduction of a tax on banks.According to Arkady Dvorkovich, the Russian sherpa, other countries as "Canada, Australia, China and India" share the fears of Russia.
Penalties "proportionate and coordinated"
As they had said after their meeting early last week in Berlin, France and Germany believe that much remains to be done to ensure financial stability, "while the economic recovery could be threatened by new financial strains "
Among the many issues discussed, the issue of sanctions against countries "uncooperative" in the exchange of tax information or suspicion of money laundering.In this area, France and Germany want the G20 to go further this time by defining sanctions "proportionate and coordinated" against those countries and asked the OECD, which was published in early 2009 a list of countries targeted, the update in time for the summit in November 2011 in France.
They also want the Financial Stability Board (FSB) broadcasts before the end of 2010 a list of financial "who refuse to cooperate and comply with international standards for prudential" bad credit payday advance.
Nicolas Sarkozy and Angela Merkel address two other issues of topical hottest, new prudential regulations for banks and regulation of financial derivatives markets over the counter.
Prudential "selected and calibrated"
For the former, they believe they should be "selected, calibrated and implemented so as not to jeopardize the economic recovery." They wish they were not introduced before the end of 2012, "by leaving adequate transition periods and appropriate protective clauses.
Derivatives was, they called for an acceleration of "the implementation of strong measures" to improve transparency, notably through mandatory reporting of all transactions in central databases, trading on regulated markets and use of clearinghouses.
They also want an answer "coordinated" with the specific challenges posed by the markets of CDS (credit default swaps), derivatives used to hedge against risks of default of a borrower whose responsibility has been questioned by politicians in the debt crisis in Greece.
READ ALSO:
"Tax credit: Merkel-Sarkozy offensive
