Germany Presses EU to Adopt Transaction-Tax Plan Soon

Germany wants speedy action on a European Union financial-transaction tax, the German Finance Ministry said.

“The German government position continues to press for a introduction of the financial-transaction tax soon,” the ministry said today in an e-mailed comment to Bloomberg. “We continue to aim for a broad base combined with a low tax rate.”

EU officials are due to take up discussion of the transaction-tax plan on Dec. 12, the first such discussion since September. The EU has proposed a broad tax on stocks, bonds, derivatives and other trades that could be collected worldwide by Germany, France, Spain and eight other EU nations that have so far signed up. The plan would charge a 0.1 percent rate for stock and bond trades and 0.01 percent for derivatives transactions, with some exemptions.

Central bankers in France and Spain have warned that the tax may not work as designed and could pose economic risks.

“I am an enemy” of transaction taxes, Bank of Spain Governor Luis Maria Linde said yesterday in Madrid. “It’s a poorly thought out tax. It’s a tax with negative effects and I hope it won’t be applied.”

To contact the reporters on this story: Rebecca Christie in Brussels at rchristie4@bloomberg.net; Birgit Jennen in Berlin at bjennen1@bloomberg.net

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

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