G20: EU Borg: Strong Argument For Stability Tax On Bank Assets

ST. ANDREWS, Scotland (Dow Jones)--There is a strong argument for a global stability tax on bank assets, Swedish Finance Minister Anders Borg said Saturday, in response to calls from U.K. Prime Minister Gordon Brown for a levy on banks to pay for further bailouts.

Speaking to reporters after the meeting of finance ministers from the group of 20 leading economies, Borg said "we have not formed a common E.U. position on this issue, but from the Swedish position, there is a strong argument for some stability tax on bank assets."

Borg, who spoke at a joint press conference with European Central Bank President Jean-Claude Trichet and European Commissioner for Economic and Monetary Affairs Joaquin Almunia, attended the meeting because Sweden holds the rotating presidency of the European Union.

Brown said earlier Saturday that G20 members should discuss whether they need some kind of "insurance fee to reflect systemic risk or a resolution fund or contingent capital arrangements or a global financial transactions levy."

Borg also said G20 nations must maintain economic stimulus "for some time," stressing that G20 finance ministers are agreed that "economic policy needs to be expansionary for some time."

Asked whether foreign exchange had been discussed at the meeting, Trichet said "no," pointing out that there was no mention of currencies in the G20 communique.

-By Joe Parkinson, Dow Jones Newswires; 44-207-842-9270; joe.parkinson@dowjones.com

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(END) Dow Jones Newswires

November 07, 2009 11:06 ET (16:06 GMT)


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