* EU to push financial transactions tax at G20 summit
* Canada says enough in G20 are against it to block it
* Czech prime minister says opposes EU-wide tax
(Adds Canadian, Czech positions; dateline/byline)
By Robin Emmott and John McCrank
BRUSSELS/NEW YORK, Oct 5 The European
Commission said on Wednesday it would push next month's G20
summit to agree on a global financial transaction tax, but
Canada said it may have enough support to block such a move.
Flanked by German Chancellor Angela Merkel at a news
conference in Brussels, European Commission President Jose
Manuel Barroso said it was time to push ahead with the
"The chancellor and I agreed that the time is right to
create new momentum globally and at the G20 summit in Cannes,
we will press for a global financial transaction tax," Barroso
The transactions tax idea has been around for some time and
came back into vogue during the 2008-09 financial crisis due to
calls for banks and investors, rather than taxpayers, to fund
their own bailouts.
The idea has run into stiff resistance from Canada, the
United States, Australia, China and others. Canada has argued
that its banks were sound during the recent recession and did
not require bailing out. It also says that such a tax would be
counterproductive by reducing banks' ability to lend during
times of weak economic growth.
Canadian Finance Minister Jim Flaherty, in a speech to the
financial industry in New York on Wednesday, noted that Canada
and others had helped keep the Group of 20 (G20) leading
economies from imposing a global tax.
"We will continue leading that charge against a
transactions tax and I am confident that our allies on this
point, who are the emerging economies, will stay with us and
join us in opposing what we view as a counterproductive tax,"
"I am actually confident that we have enough of them in the
G20 that we will be successful on that initiative," he added.
G20 finance ministers will meet next weekend in Paris and G20
leaders will meet Nov. 3-4 in Cannes.
The European Union is proposing a 0.1 percent tax in the EU
on trading bonds and shares from 2014, and a 0.001 percent tax
on derivatives trading.[ID:nL5E7KS6IQ]
Britain also opposes such a tax and says it would only
support a levy if it was global. Czech Prime Minister Petr
Necas said on Wednesday his country is against an EU-wide tax.
(Additional reporting and writing by Robert Mueller in Prague
and Randall Palmer in Ottawa; editing by Rex Merrifield and