France yesterday said it would follow Britain's lead in levying a supertax on bankers' bonuses giving added momentum to global efforts to curb high levels of financial sector pay.
Britain's one-off 50 per cent tax on discretionary bonuses, announced on Wednesday, provoked fury in the City of London, but the unilateral move has emboldened other leaders to take action ahead of what is expected to be a bumper bonus round for bankers.
One French government official said a bonus tax had been under consideration for some time but that President Nicolas Sarkozy had feared it could damage Paris as a financial centre. “The fact that London has introduced it has changed the landscape,” the official said.
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