German SPD calls for European financial market tax

BERLIN, April 30 (BestGrowthStock) – Germany’s largest opposition
party called on the government on Friday to support the
introduction of a European financial market tax in return for
its agreement to an aid package for debt-stricken Greece.

Those responsible for the financial crisis must bear the
costs of it, leaders of the Social Democrats (SPD) wrote in a
letter to party members nationwide.

“Therefore we urge the government to take drastic steps to
introduce a financial market tax in Europe together with other
member states,” wrote SPD chairman Sigmar Gabriel and the leader
of the SPD’s parliamentary group, Frank-Walter Steinmeier.

Germany is preparing to agree to contribute to a euro
zone/International Monetary Fund aid package for Greece once IMF
and European officials have agreed an austerity plan for Athens,
which the German government expects to happen this weekend.

While Merkel does not need the SPD’s support to get
parliamentary approval for Germany’s contribution to the aid
package for Greece, the opposition party could slow down the
process — a scenario the ruling coalition wants to avoid.

Steinmeier said on Thursday his party wanted German aid for
Greece to be linked to a longer-term commitment to make banks
participate in a solution to the Greek problem and steps to
limit speculation in markets. [ID:nLDE63S1G8]

Leading members of the coalition have said the package could
involve contributions from banks.

German Vice Chancellor Guido Westerwelle said on Friday he
expected banks in Europe wanted to and would contribute to an
aid package for Greece.

Westerwelle told German broadcaster RTL: “I expect that,
just as in Germany, banks will participate in the consequences
of the economic and financial crisis through the famous bank
levy that we agreed upon in the government, so also in Europe
banks will want to make their contribution and will do so.”

Investment Analysis
(Reporting by Hans-Edzard Busemann and Sarah Marsh)

German SPD calls for European financial market tax