The opposition denounces a "farce" that "makes pay only small shareholders".
Germany sent nine of its European partners on Monday 9 December a new draft European Financial Transaction Tax (FTT).
Finance Minister Olaf Scholz has submitted a "final proposal" to tax up to 0.2% purchases of shares of companies whose market capitalization exceeds one billion euros Said the ministry Tuesday. Ten countries – Germany, France, Belgium, Italy, Spain, Portugal, Greece, Austria, Slovakia, Slovenia – have been part of a close cooperation on the subject and have been discussing for years but the project is at a standstill.
"We are for the first time since 2011 in a position that allows us to reach an agreement in the framework of close cooperation," says Scholz in a letter to his counterparts. He hopes that the European legislative procedure can be "finalized quickly".
AN IDEA OF THE 1970s
The tax proposed by Berlin does not relate to bonds and financial derivatives. And a number of transactions could be exempted, including IPOs or pension funds. In Germany, the TTF must bring back some 1.5 billion euros, much of which must finance the increase in minimum old age decided in November by the government coalition.
The idea of taxing financial transactions dates back to the 1970s and had a new lease of life in 2011 as the financial crisis raged in the European Union.
France, Italy and the United Kingdom already tax certain financial transactions.
"A FARCE", ACCORDING TO THE OPPOSITION
The new proposal of the German Social Democrat Minister is however already criticized in the country by both the opposition and the partner CDU coalition. Sven Giegold of the Greens lashes out at the newspapers of the Funke group "a joke" which "is not a real tax on financial transactions" and that "makes small shareholders pay only".
"The proposal is an attack on the small German shareholders," said Conservative MP Christoph Ploss to the same newspaper.