By Daniel Flynn & John Stonestreet

French President Nicolas Sarkozy promised "shockwaves" with a unilateral tax on some financial transactions, but the modest levy his government outlined on Monday was viewed as a political gesture that will cause few market ructions.

 

With the first round of presidential polls three months away, Sarkozy launched a raft of proposals designed to shore up France's budget deficit, improve competitiveness and make the financial sector share the burden of the crisis.

 

In the absence of an EU-wide agreement, he said on Sunday he would implement the 0.1 percent financial transactions tax on trading in stocks, but not until Aug. 1.

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