German SPD May Compromise on Swiss Tax Deal, Rheinische Says

Germany’s opposition Social Democratic Party may allow a stalled German-Swiss tax treaty to go into effect under certain conditions, the Rheinische Post newspaper said, citing an SPD state minister it didn’t name.

The governments of Rhineland-Palatinate, Hamburg and Baden- Wuerttemberg, where the SPD is in power, would no longer block the treaty in the upper house of parliament if the Berlin-based federal government can convince Switzerland to start reporting German tax dodgers retroactively from the autumn of this year, the newspaper cited the minister as saying. The treaty is to take effect on Jan. 1, 2013, it said.

Support from the three states would be enough to let the law pass even if the SPD-led government of North Rhine- Westphalia, which insists on more far-reaching changes, continues to resist backing it, the newspaper said.

To contact the reporter on this story: Rainer Buergin in Berlin at rbuergin1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.