November 14, 2013 / 11:16 AM / in 4 years

German parties urge FTT covering stocks, bonds, FX, derivatives

BERLIN, Nov 14 (Reuters) - German parties discussing policies for a coalition government are urging the rapid implementation of a financial transactions tax among EU countries, covering stocks, bonds, currencies and derivative contracts, according to a document seen by Reuters.

“We want to swiftly introduce a financial transactions tax that has a broad basis at a low tax rate as part of strengthened cooperation within the EU,” the document, prepared by a working group on Europe and banking regulation reads.

“This tax should cover all financial instruments, especially stocks, bonds, investment assets, foreign exchange transactions and derivative contracts.”

Merkel’s outgoing centre-right government supported the idea of an FTT as a way of making banks contribute to the cost of cleaning up after the financial crisis, but fewer than half of the EU’s 28 members back such a move.

An FTT is a pet issue of the centre-left Social Democrats (SPD), with whom Merkel’s conservatives are currently in coalition negotiations, and Berlin could therefore renew its push for the tax once a new government is formed.

To become policy, the document must still be approved by a bigger panel led by Chancellor Angela Merkel and other party leaders.

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