Germany, France and UK to Lobby G20 over Bank Levy

<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Germany, France and Britain on Tuesday announced plans to introduce a bank levy to help meet the costs of the financial crisis and plan to discuss the plans with G20 colleagues next weekend in Toronto.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

A joint statement said the three biggest European economies were "committed to the full implementation of the ambitious G20 financial sector reform," and would "discuss those proposals further with international partners" at G20 summit.

"The specific design of each may differ to reflect our different domestic circumstances and tax systems, but the level of the levy will take into consideration the need to ensure a level playing field," said the statement.

It also added that tax aimed to ensure banks "make a fair and substantial contribution towards paying for any burdens associated with government interventions to repair the banking system or fund resolution in a financial crisis."

It noted that Germany had announced a framework for a national bank levy at the end of March, and will present the draft legislation in summer.

France said it would present details of its bank levy in the 2011 budget while Britain’s new government included a bank tax in Tuesday's austere emergency budget.

G20 finance ministers and governors dropped the idea of a common levy early this month in Pusan due to resistance from Japan, Canada and Australia.