Schäuble calls for EU lead on Tobin tax

Wolfgang Schäuble, Germany’s finance minister, wants the European Union to take the global lead in introducing a financial transaction tax to curb speculative trading, along with tougher regulation of big banks and the “shadow” banking sector, such as hedge funds, the FT reports. If the UK blocked agreement on such a tax in the full EU, the eurozone should press ahead on its own, he said. He also called for big steps towards a “fiscal union” in the 17-member monetary union to underpin the stability of their common currency. Speaking just days before the G20 summit of global economies in Cannes, Mr Schäuble spelt out his conviction that failure to reach agreement on tougher financial regulation by the full G20 should not stop Europe acting alone. He insisted that the eurozone was not “on a negotiating trip” to seek help from G20 partners such as China to stem contagion from the Greek debt crisis. “You don’t get any free gifts in the market,” he said. “You must offer sensible investment opportunities.” He denied that Europe would offer political concessions to attract investors.