Schäuble says EU should 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. If the UK blocked agreement on such a tax in the full EU, he said in an interview with the FT, the eurozone should press ahead on its own. 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 also called for big steps towards a “fiscal union” in the eurozone, saying there was a need for “stronger institutions to oversee the implementation of a commonly agreed finance policy”. The changes might focus on Article 136, says the FT, setting out how the 17 eurozone members can agree “measures specific” to themselves on budget discipline and economic policy, which might be a way to avoid offending the UK government in particular.