German Chancellor Angela Merkel appealed to the rest of the European Union to unite behind plans for a levy on the banks she blames for the economic crisis, but deep divisions remained over how and when to impose it.
Merkel made her pitch today as EU leaders meet to discuss tightening controls on spending by the bloc's 27 countries and how to charges against the banking industry should be structured.
"We will prepare for the G20 and G8 meeting so that we can go with as united a European position as possible that also covers a bank levy and taxation of financial markets," said Merkel. "Germany and France ... are in favour of calling more on those who caused the crisis to pay up."
Diplomats said leaders are set to issue a statement later backing the principle of a bank levy, which the EU executive has said it could pioneer despite a failure to secure agreement from other global powers that they would follow suit. But doubts persist as to whether Europe can agree a code for a levy.
Britain, which will introduce its own bank charge is opposed to pan-European rules, and Ireland is
nervous that an extra charge on its banks could exacerbate their difficulties.
"I want to push it through on a European level but there are many countries that do not think this," Austrian chancellor Werner Faymann said of a levy.
Earlier this month, finance ministers from the Group of 20 countries ditched plans for a global bank levy in the face of opposition from Japan, Canada and Brazil, whose lenders came through the credit storm relatively unscathed.
Britain and France would use the money raised for public spending, while Germany wants it ring-fenced for future crises.
REUTERS