Germany Will Stand Alone on Financial Transaction Tax
October 17, 2011 Taxation in EU
PARIS – Germany will continue to push for a financial transaction tax to be implemented around the world, but is willing to instate the measure alone if it does not see further international support.
The idea of imposing a global financial transaction tax was raised once again at the Meeting of G20 Finance Ministers and Central Bank Governors over the weekend. Following the meeting the Finance Minister of Germany Wolfgang Schaeuble spoke to members of the press and said that throughout discussions it had been “clearly shown we should introduce it [a financial transaction tax] in Europe.”
When questioned on the likelihood of the tax being imposed on a global scale, the Minister conceded that some countries are still showing strong resistance to the proposed levy. He added that in the current political and economic environment it seems unrealistic to impose the financial transaction tax globally. However he went on to say that Germany will continue to campaign for the tax to be brought in across the EU, and will even instate the levy alone if it receives no international support. The Minister said that the financial transaction tax will be an important discussion point at the G20 Summit in November.
German Chancellor Angela Merkel also commented on the tax during the weekend, saying that the measure is the type of “reasonable regulation” currently needed to inspire confidence in the current economic situation. She also issued criticism to the US and Canada for refusing to support a financial transaction tax, saying, “…it’s not acceptable that especially those [countries] outside the euro region, who are time and again pushing us to take broad- based action to manage the debt crisis, are at the same time flatly refusing to impose a financial transactions tax.”
Photo by World Economic Forum