France and Germany agree need to ring fence banks' trading- min

PARIS Mon Jan 27, 2014 6:54am EST

PARIS Jan 27 (Reuters) - France and Germany agree on the priciple that banks' speculative activities must be separated from other business lines, French Finance Minister Pierre Moscovici said on Monday.

"We have confirmed our agreement in principle on the separation of speculative banking activities," he said after a meeting of the French and German finance ministers and central bankers in Paris.

His German counterpart, Wolfgang Schaeuble, said that the two countries also aimed to ensure that a new financial transaction tax did not not harm the functioning of their financial markets. (Reporting by Leigh Thomas; Editing by Nick Vinocur)

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