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'Follow Sarkozy on taxes' says Econ chair

Tuesday 1 February 2011 - by Nicola York

The chair of the Economic and Monetary Affairs committee in the European Parliament is calling on European leaders to follow French President Sarkozy's calls to tackle corruption in the developing world through tax transparency.

Sharon Bowles MEP is urging other developed nations to follow Sarkozy's example in vowing his commitment to support transparency in the area of natural resource extraction in Africa.

Bowles, who has been a long-time campaigner for fair taxes in Africa, says: "President Sarkozy is setting an example that other EU leaders must follow if we are to achieve fair and transparent taxation in the developing world.

"The pressure is mounting on the huge multinationals that make a fortune mining Africa's natural resources.

"I welcome advances being made in this area but it is vital that pressure groups and campaigners continue to mount pressure on big business and national governments in order to bring about the change that these African nations so desperately need."



In a separate statement released today, Bowles has restated her support for banks remunerating staff through contingent convertible bonds, which can be converted to capital when a bank runs into trouble and needs to recapitalise.

Barclays is in the process of seeking approval from the UK Financial Services Authority over whether it can issue CoCo bonds to its staff.

Bowles says: "CoCo bonds are a way of realigning reward with performance and risk. If a bank runs in to difficulties, CoCo bonds convert into equity which can then be used to recapitalise the bank.

"If a bank is better able to protect its capital base then lending, especially to small and medium businesses, is also protected.

"I support Barclays' efforts to pay its staff in CoCo bonds and hope that others will follow. In future, failing banks should be bailed out by the bonus pot and not the taxpayer."


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