Sarkozy announces French financial transaction tax for August

French President Nicolas Sarkozy has unveiled plans to introduce a tax on financial transactions.

He said the 0.1% levy will be introduced in August regardless of whether other European countries follow suit, according to the BBC.

Sarkozy gave no further details on the tax, but a government source later told Reuters it would target shares and not bonds.

Sarkozy told French TV he hoped the tax would push other countries to take action.

"What we want to do is create a shockwave and set an example that there is absolutely no reason why those who helped bring about the crisis shouldn't pay to restore the finances," he said.

"We hope the tax will generate one billion euros ($1.3bn, £0.8bn) of new income and and thus cut our budget deficit."

French and German proposals for an EU-wide financial transaction tax were among the reasons the British Prime Minister David Cameron vetoed EU treaty changes at a summit in Brussels in December.

Cameron argued it would penalise the City of London where 75% of European financial transactions take place.

The tax is part of a package of measures set out by the president to promote growth and create jobs and comes as Sarkozy fights to retain his presidency as April elections loom.

He is currently trailing in the opinion polls behind his Socialist rival, Francois Hollande.