September 21, 2009 / 10:12 AM / 10 years ago

Merkel sees no deal on "Tobin tax" at G20

BERLIN (Reuters) - German Chancellor Angela Merkel does not expect a Group of 20 summit in Pittsburgh this week to agree a so-called “Tobin tax” on global financial transactions, she said on Monday.

German Chancellor Angela Merkel waves people during an election campaign rally in Lindau, September 20, 2009. REUTERS/Miro Kuzmanovic

The meeting on September 24-25, which falls in the last few days of a German election campaign, is the third meeting of leaders of developed and emerging economies called since the global financial crisis deepened a year ago.

“(A tax on financial transactions) is not dead .. it is something we are going to push for in Pittsburgh,” Merkel said in an interview to be broadcast on NDR radio.

“I don’t think we will get 100 percent agreement on it in Pittsburgh but we on the German side will address the idea,” she said.

Merkel also stopped short of predicting a deal between G20 states on curbing bankers’ pay and bonuses.

“The EU has agreed to take a common line on this in Pittsburgh and we hope that we will be successful,” said Merkel.

She said while there was a broad agreement that there should be no bonuses for ill-judged decisions, there were still open questions about how to link bonuses to pay levels.

“We must make progress in Pittsburgh on the question of how we can make sure the banks do not hold us to ransom,” she said.

She said she did not want to single out any countries, such as Britain or the United States, for being obstructive.

But Merkel also said she could understand a certain skepticism among voters who thought there was a chance the financial crisis could be repeated.

“I think a certain skepticism is appropriate. It will need a lot of energy and courage to achieve our goal,” she said.

“We want regulations on every financial market and every financial product and every financial institution in the G20.”

“There is still a lot of work to do.”

Reporting by Madeline Chambers

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