Financial Transaction Tax Urged By German Opposition Ahead Of EU Austerity Treaty

BERLIN (AP) — Germany's opposition leader says Chancellor Angela Merkel's government must introduce a financial transaction tax to secure his center-left party's support for the European Union's fiscal treaty.

Merkel's center-right government needs opposition parties to secure a two-thirds majority in Parliament for the ratification of the EU treaty enshrining fiscal discipline.

Frank-Walter Steinmeier told Sunday paper Bild am Sonntag his party will only back the treaty "if there will be a clear Cabinet decision to tax financial markets."

Merkel backs such a tax in principle but has cautioned that it must be introduced Europe-wide to have real impact.

The opposition also demands that a set of measures promoting growth and job creation in Europe's ailing southern nations be added to the treaty.

Both sides will meet June 13 to forge an agreement.

Comments

[Cratewasher]

09:56 AM on 06/04/2012

If Wells Fargo can charge you $15 a month for having an account, why shouldn't we charge banks a transaction tax, too?

[doober]

09:26 AM on 06/04/2012

The IMF and all the Euro group are as usual giving all the money to the 1% and making the 99% make all the sacrifices and then wonder why there are riots..

They want to take away all the social programs for the 99% and give the money to the 1% who don't need it and then they can't understand why there are riots..
It is again the theory of Trickle down economy that has been proven time and time again not to work..Instead they should insist that the money go to the bottom of the economy and allowed to Trickle up..We give aid to ordinary people when there is a disaster such as an earthquake and people are homeless and starving..If the money goes in from the top it disappears and the only aid that works goes in from the bottom.

[Savage Saint Roger]

08:23 AM on 06/04/2012

Tax financial markets? What a novel idea! Maybe it will catch on here in the USA before the bankers take us down too.

[twmorganstern]

07:44 AM on 06/04/2012

Can anyone point out an area in Europe where forcing depressive policies ( austerity ) creates growth. Or for that matter even just balances a nations economy? Just one will do...

It was nice knowing you Euro...

[alunsulen]

04:55 AM on 06/04/2012

Do it, socialists! All the action will then move to London.

[Marc Driftmeyer]

05:28 AM on 06/04/2012

No it won't.

[jessjesskk]

06:47 AM on 06/04/2012

you're right, it will not, because most of the financial action already is in London anyway.

[Michael GE]

07:46 AM on 06/04/2012

Aaaaaaannnd you think that nobody thought of that? Ofc the proposal is constructed in a way that would disencourage doing so by simply making it dependent upon the residency of either the sender OR the recipient of a transfer with both - sender and recipient - having to pay half of the tax.

http://www.spiegel.de/international/business/taking-on-the-speculators-what-would-a-european-tobin-tax-really-mean-a-808592-4.html

And then there is (nice one, because the UK can't veto this but has to bow to the qualified majority decision) the ECB policy proposal to force clearing houses that deal with a certain amount of Euro- denominated assets to do so only under Eurozone jurisdiction (and no longer in London alone).

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8763605/UK-to-sue-ECB-over-clearing-house-regulations.html

[victorianism]

11:27 PM on 06/03/2012

Just wonder why voters haven't been showing any desire to have the USA Germanized, given Angela Merkel's great success in reigning in the greedy and creating prosperity for all, though of which Republicans of the US would most prefer to say 'cracking down on the jobcreators.'

[Don Clanton]

04:38 AM on 06/04/2012

They are terrified that they're going to be "Socialized". This is a cold-war hangover that will not be going away til the old guard is too feeble to resist the young and clear-sighted.

[jackson47]

11:03 PM on 06/03/2012

Merkel is a bit sanctimonious when she tells other European nations that they must shoulder their debt while she pushes for austerity. Germany has been feeding off of the American T iT for 67 years. The US has stationed our military in Germany since WWII. I spent 18 months in Germany in the late 60's. I spent nearly every dime on German products food, beer, clothing did I mention beer. I only made about $270 a month but I gave it all to the German GDP. At the time there were 250,000 troops in Germany if everyone spent just $100 a month that is $300 million annually in 1969. Currently we have 70,000 troops in Germany. I have read anywhere between 53,000 and 90,000. Our military makes more money today so if we use a figure of $1,000 spent per month in the German economy we get an annual figure of $840 million. This is just an estimate of troop spending. I have no idea what the US government pays for rent and other services.

If we removed our troops tomorrow how would Merkel's economy look?

[Marc Driftmeyer]

05:30 AM on 06/04/2012

Your math is wrong. 100 per 250,000 is $25 Million, not nearly $300 Million. I get your point and find her hold on austerity about to collapse. Just thought I'd clarify the math.

[jackson47]

11:31 AM on 06/04/2012

You missed the word annually.

[Michael GE]

06:24 AM on 06/04/2012

"If we removed our troops tomorrow how would Merkel's economy look?"

Uhm, in 2011 Germany's GDP/ size of the economy was 3099 billion. Assuming your calculation was correct, it would have been a 3098 billion economy.

"I have no idea what the US government pays for rent and other services. "

Given how it came that US troops were stationed in Germany, the US troops don't pay rent. It remained that way even after 1990. Actually, the German government does pay for certain services (like some of the maintenance, etc., etc.) the US forces need. And the US forces generally are exempted from paying taxes.

[WorldisMorphing]

07:31 PM on 06/03/2012

Smart move Mr. Steinmeier.
Giving the circumstances, it's the wisest one you can make.

[bethel1974]

07:23 PM on 06/03/2012

I see this tax slowing down or actually killing high speed trading. Actually stopping flash crashes. I think this is interesting.

[jessjesskk]

06:49 AM on 06/04/2012

agreed.

[ConservativeSuperstar]

07:03 PM on 06/03/2012

No way should there be a "financial transaction tax" for anything.

Buzz off greedy Lefties...

[spinotter11]

07:06 PM on 06/03/2012

Why should there be a sales tax for many essential purchases necessary for life for those who have the lowest incomes, and no financial transaction tax for those on top of the food chain?

[jhuffington]

08:55 PM on 06/03/2012

Because he just heard the word tax and doesn't know what he is talking about.

[Stoopid American]

07:06 PM on 06/03/2012

If banks want to be bailed out when they misbehave, they cannot cry foul when the government wants to force them to save up for the bailout. It is not the taxpayer who is greedy here.

[an seanchus mor]

10:34 PM on 06/03/2012

So true, the banks should practically have a government member on their boards and be forced to play the game right. They are owned now by the rulers of the democracy, namely us.

[nothingchanges]

06:22 PM on 06/03/2012

Well, we all knew it wouldn't be the United States now didn't we?

The 1% OWN our government.

They paid for it with campaign contributions.

[munki]

04:02 PM on 06/03/2012

Simple formula please... too complicated... hmmmm....

[Hugo Stiglitz1]

04:11 PM on 06/03/2012

Europe's broke countries may be broke, and may demand Germany bail them out, and Germany is even willing to do it... in exchange for one small thing: just over 3000 tons of gold.
http://www.zerohedge.com/news/germany-has-generous-proposal-broke-piigs-cash-gold

[munki]

06:42 PM on 06/03/2012

I am only hoping broke countries in Europe will not drag Germany down... someone has to be healthy to get everyone up... but not... bailing them out... maybe I am not following the whole situation... oh well... it is even hard for me to understand our own... :)

[leorangerie]

02:50 PM on 06/03/2012

The complexities are endless, but this much we know: the history of any society with too great a gap between the haves, and have nots, inevitably ends badly for all.

[altosax]

03:50 PM on 06/03/2012

That was before BlackWater. The 1% feel much better now.

[jhuffington]

08:57 PM on 06/03/2012

Also countries who try to rule the world with military might. Uh-oh.

[madcityy]

02:48 PM on 06/03/2012

THIS TX IS JUST ANOTHER WAY TO STEAL THE $$$$$$ OF THE WORKERS.

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

[HMDMSR]

03:01 PM on 06/03/2012

How is that?

[RunningBecky]

03:05 PM on 06/03/2012

Knee jerk impulse. He has no idea what he is talking about.

[novictim]

03:25 PM on 06/03/2012

Don't worry, madcityy!

When they come for your bags of cash and gold, they'll only shoot you in the knee caps. You'll live!

[codycap]

02:47 PM on 06/03/2012

http://www.dailykos.com/story/2012/06/02/1096444/-Reuters-reports-Germany-sets-new-solar-power-record-an-American-expat-s-view-from-Germany-

Germany has become the richest country in the European Union. A position arrived at through high rates of unionization, Germany has become the world's third largest exporter. Also its non-unionized workforce to include even its low wage workers, as a human right enjoy cradle to grave medical, dental, paid sick leave, paid maternity leave and 4 weeks paid vacation, along with subsidized childcare, eldercare, and with university tuition that is so cheap that American students pay more in books than German students pay in tuition per annum. Compared to America, given the fairer distribution of wealth people can elect to pay more for clean, green solar energy as a sensible lifestyle choice.

Quote:"I can't help but think that the relative income equality in places like Germany helps the programs to be so successful and popular—you're going to be much more likely to accept higher costs if you feel like everyone's more or less in it together. This is the case in places like Denmark, too, where there's more equality and publicly tolerated higher electricity costs......

[mumi009]

04:37 PM on 06/03/2012

I live in Germany and agree with with your statements.

[huskerfanfl]

08:09 PM on 06/03/2012

To be fair this is indeed true. It should be noted that Germany's income tax is much steeper a 25% rate at 50,000 euros income and a 19% Value Added Tax (sales tax) on most items, along with other taxes.

[pr0gressivist]

07:10 AM on 06/04/2012

Yes, but you get so much more for your taxes. And frankly, if you're self-employed in the U.S., the difference isn't noticeable.

[blackranger]

10:23 AM on 06/04/2012

There are strong unions and a strong middle class in Germany. People manage to be able to pay those taxes and still have more to spend than the workers in this country.