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Barnier seeks co-ordination of bank levies
Date 07/09/2010 17:18  Author webmaster  Hits 855  Language Global
07 SEP 2010
 
By Jim Brunsden
 
Warning of risks to handling of future crises.
The European Commission will warn tomorrow (7 September) that the haphazard way in which member states are introducing levies on their banking sectors risks destabilising the internal market, and making it difficult for governments to co-operate in the event of another financial crisis.
 
Michel Barnier, the European commissioner for internal market, will urge governments to commit themselves to following common principles in the design of their levies, including that money from them should flow into funds dedicated to helping banks in financial difficulties.
 
National governments, with the exception of the Czech Republic, agreed in June to introduce levies on their banking sectors. Governments believe that the levies should be imposed on their banks in return for the taxpayer support the financial sector received during the crisis.
 
Since then, the UK, Germany and Hungary have taken legal steps to introduce levies, while France is expected to follow suit this month. Sweden has had a levy in place since 2009.