Reuters logo
UPDATE 1-Germany open to bourse levy, prefers broader tax
January 20, 2012 / 1:46 PM / 6 years ago

UPDATE 1-Germany open to bourse levy, prefers broader tax

* Germany would consider bourse tax or stamp duty

* UK would back only global financial transaction tax

* Stamp duty taxes only shares, falls on investor

* FTT taxes shares, bonds, derivatives, paid by banks

By Alexandra Hudson

BERLIN, Jan 20 (Reuters) - Germany favours an EU-wide tax on financial transactions but would consider a narrower bourse levy as a compromise if it secured the support of Britain, the government’s spokesman said on Friday.

German Economy Minister Philipp Roesler had earlier raised the possibility of a bourse tax or stamp duty as an alternative to a proposed financial transaction tax, which Britain opposes for fear it could make London less attractive for business against other global financial centres.

Britain already operates a stamp duty of 0.5 percent on trading shares, a levy which the investor pays.

Under the European Commission’s proposed financial transaction tax, bonds, derivatives and shares would all be taxed, with the banks that handle the transaction having to pay rather than the investor. For a factbox on how it could work click on

The moves are all broadly part of the drive since the financial turmoil of 2008 to make Europe’s banking sector pay more back to the rest of society in recognition of how governments have had to carry the can for its losses.

German Chancellor Angela Merkel has said Germany wants a financial transaction tax introduced across the European Union, but has indicated her Christian Democrats (CDU) would accept the tax also within the 17-member euro zone if Britain rejected it.

That has put her at odds with Roesler’s Free Democrat Liberals (FDP), her junior coalition partners, who will only accept the tax across the EU.

Asked to clarify Berlin’s stance, government spokesman Steffen Seibert said at a regular press conference on Friday there was no change.

“The government welcomes the EU Commission’s proposal because it encompasses our requests for a broad based tax with a low rate. We will fight for this.”

However, he added Roesler’s suggestion was “sensible”.


“He is looking at all possibilities for getting the United Kingdom on board... We need to find out in talks whether a bourse tax could be a bridge for the United Kingdom, then Germany will discuss this with its European partners.”

European leaders have said they plan to map out a financial transaction tax by March. Finance Ministry spokesman Martin Kotthaus said discussions on this were continuing.

“We would like to have settled by the end of the first quarter if this is a proposal which flies... If not then we have to look at what other ways are possible.”

France has also previously said it would campaign for a financial transaction tax within the euro zone. Spokesman Seibert declined to comment on whether the French were also considering alternatives.

Asked what its stance might be on an EU-wide stamp duty proposal, a spokesman for Britain’s Treasury said none had been formally tabled but that London continued to engage with other members on the matter.

A senior Bundesbank member on Friday urged governments to reach agreement on the issue as soon as possible in order to provide clarity to markets.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below