German conservatives back EU transaction tax-sources

BERLIN, May 17 (BestGrowthStock) – German Chancellor Angela Merkel’s
conservatives will push for a European financial transaction tax
to help cover the costs of the debt crisis, parliamentary
sources told Reuters on Monday.

Volker Kauder, parliamentary floor leader of the
conservatives, spoke strongly in favour of the tax at party
talks, according to the sources.

“The levy has become a symbol of the participation of the
private sector in overcoming the crisis,” the sources cited
Kauder as saying.

Merkel has been cool on the idea of a transaction tax,
saying it would be tough to get it agreed internationally. It
would be easier to push through a European tax.

The sources said Finance Minister Wolfgang Schaeuble had
already agreed to support the proposal for a European
transaction tax and to present it at the meeting of EU finance
ministers in Brussels on Monday and Tuesday. Only Britain and
Sweden are expected to oppose such a tax, the sources said.

Earlier in the day, asked about the option of an EU-wide tax
on financial transactions, a government spokesman said this was
part of the discussion process but stressed that Germany was
focusing on other ideas, such as a bank charge.

Merkel’s Free Democrat allies (FDP), with whom she rules in
a centre-right coalition, opposed a financial transaction tax.

The Bundestag lower house of parliament is set to vote on
Friday on Berlin’s part in the 750 billion euro rescue package,
which includes 123 billion euros of German loan guarantees.

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(Reporting by Andreas Rinke, writing by Sarah Marsh; editing by
Tim Pearce)

German conservatives back EU transaction tax-sources