Barroso: Bank sins show need for a Tobin tax

Julian Harris
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BANKING scandals such as the Libor fixing case have strengthened the case for imposing a Tobin tax on the financial sector, the president of the European Commission said yesterday.

Jose Manuel Barroso praised the EU’s moves towards tougher regulation of finance.

“Whilst the proposal for a financial transaction tax has unfortunately not met with unanimous support from member states, I would like to welcome the decision to start negotiations under enhanced cooperation for all Member States that will wish to join the initiative,” Barroso said.

“We have seen once again in recent months and weeks ... that practices that have fuelled the financial crisis are not yet eradicated from the sector,” he added, hitting out at “reckless trading and market manipulation”.

“It is time that these practices stop once and for all. And it is time that a sector that owes so much to the taxpayers’ support accepts to hand back a fair share to society.”