France In Favor Of Matching UK Bank Bonus Tax - Government Official

France In Favor Of Matching UK Bank Bonus Tax - Government Official

PARIS -(Dow Jones)- France is in favor of matching a tax on bank bonuses that will be applied in the U.K and is likely to slap such a levy on bonuses to be paid out in 2010 for the past year, a senior French government official told Dow Jones Newswires Thursday.

The U.K.'s decision to tax bank bonuses could make a similar move easier in France as it removes concern about the competitiveness of Paris as a financial market place, the official added.

"We are in favor of such a tax as the French president has outlined in the Wall Street Journal. In so far as this will be applied in the U.K., this removes one of the main competition hurdles for Paris," the official said.

In a co-authored article published in Thursday's Wall Street Journal, French President Nicholas Sarkozy and Prime Minister Gordon Brown said a one-off tax on bank bonuses should be considered a priority.

The U.K's initiative was outlined Wednesday in the government's latest budget plan and will consist of a 50% tax on some bonuses to be paid by banks to employees.

-By Nathalie Boschat, Dow Jones Newswires; + 33 (0) 1 40 17 17 40; nathalie.boschat@dowjones.com