Rajoy backs immediate tax on financial transactions

Rajoy held his first key international meeting yesterday with French Prime Minister Nicolas Sarkozy. The meeting produced two agreements. First, Rajoy openly backed creating a tax on financial transactions that would go into effect immediately. Sarkozy likewise agreed to this measure.

Second, Sarkozy took the bait and set another for Rajoy when claiming that Spain, because of its GDP and position in the European Union, has to keep a position in the Managing Committee of the European Central Bank (ECB). In fact, Rajoy advocated for Spain being "more involved in the EU and speaking up more."

Rajoy outlined the battle that Sarkozy has made against the so-called Tobin tax, but steered clear of German Chancellor Angela Merkel's policy (taking more time to be able to reach agreement) and Sarkozy's position, that it is best to levy the tax relatively soon. Sarkozy has already promised that it will take effect before the end of the year.

The Spanish prime minister insisted that the EU bosses are on the same page, which Sarkozy reiterated. "Let's discuss, let's agree and let's do this already," Rajoy said.