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Banker's Bonuses (December 10, 2009)

France is preparing to follow Britain's lead with a one-off 50 per cent tax on bankers' bonuses, according to a French Government source.

President Sarkozy is said to have agreed to include a levy on pay-outs of more than €27,000 in the French budget or in a forthcoming law on regulation of the financial services industry.

The tax will be paid by banks, according to the source.

A spokesman for Mr Sarkozy confirmed that he was planning a special tax on bank bonuses but added that the details had yet to be finalised, suggesting that the French head of state might yet row back from the 50 per cent rate.

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