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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.

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