European banks slam drive for G20 bank tax

* French, German bank officials slam bank tax proposals

* Tax would hurt growth, leave Europe isolated

By Lionel Laurent and Arno Schuetze

PARIS/FRANKFURT, May 21 (BestGrowthStock) – A multinational tax on
banks as endorsed by some Group of 20 powers would hurt economic
growth and leave Europe isolated, top French and German bank
officials told Reuters.

Their comments came as France and Germany renewed their
drive to push for a multinational bank tax at G20 summits, while
the new British government has promised to impose a new levy on
banks. [ID:nLDE64J14R] [ID:nLDE64J0XN]

“(A tax) would not be able to prevent a future crisis,” said
Andreas Schmitz, president of the German Banks Association, on
Friday, adding it would drive investors to other countries that
did not impose such a levy.

“I can only warn against an isolated implementation of the
tax in Europe,” Schmitz said.

His views were echoed by French Banking Federation Director
General Delegate Pierre de Lauzun, who said a multinational tax
would hurt economic growth and would get little support from G20
powers such as Canada, Brazil and China, which have emerged
relatively unscathed from the financial crisis.

“It’s typical that the only countries talking about this
(tax) are these three countries (France, Germany, Britain) …
As soon as you go past Europe, it stops,” said De Lauzun.

The STOXX Europe 600 bank index (.SX7P: ), which includes
groups such as Deutsche Bank (DBKGn.DE: ) and BNP Paribas
(BNPP.PA: ), has fallen around 14 percent so far this year.
Stock Market Report

(Editing by Will Waterman)

European banks slam drive for G20 bank tax