Cameron - Bank transaction tax rift widens

David Cameron meets with German Chancellor Angela Merkel in Germany today, to discuss the Eurozone crisis and the imposition of a banking transaction tax, across the Eurozone territory.

Given the dominance of the UK in International trading and in world terms, compared to the other Euro member countries, David Cameron is insisting on a banking transaction tax world wide, not just in the Eurozone, that hits the UK harder than any other area.

This has become a defence of the UK as a major financial centre, because if you had a company, fund management operation or bank, that can trade in say Hong Kong with no tax, or stay in London and lose a reasonable percentage of your trade amount for doing so, then considering relocation at some stage will surely happen.

It looks highly unlikely that any other area outside of Europe will adopt a banking transaction tax, so it is difficult to see how middle ground will be found here between Cameron on the one side and the alliance of Merkel and Sarkozy, the French President on the other.

More evidence of the divisions that exist in the Eurozone, that is hanging over all markets this year.