Gordon Brown's team to lobby IMF on Tobin tax

13 November 2009

UK prime minister Gordon Brown has sent Treasury officials to lobby the IMF on the implementation of a global Tobin tax.

His representatives will also be meeting with officials from other G20 countries as they attempt to win support for the idea, reports the Guardian.

The proposed tax on financial transactions between banking institutions was first suggested by the late James Tobin, an economics professor.

At a G20 meeting last week, Brown suggested such a tax could be implemented in order to fund any future bank bailouts.

"In the long run, this is the only way that we can solve the problem of social responsibility of world banking to the community," he said last week.

But the idea met with opposition from several key economic figures, including IMF managing director Dominique Strauss-Kahn.

However, support for Brown's idea appears to be growing, with French president Nicolas Sarkozy and German chancellor Angela Merkel offering some support for the plan.

By Asim Shah

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