1/4% Tax on all stock trades pushed in NY Times today

http://online.wsj.com/article/BT-CO-20100521-704726.html?mod=WSJ_World_MIDDLEHeadlinesEurope

The introduction of a national financial transaction tax, as demanded by many German lawmakers, makes no sense, [Finance Minister Wolfgang Schaeuble] said, but added that Germany will campaign for the global introduction. If that isn't possible, a European implementation could be an option, but the approval of it is uncertain, he said.

"There is no one who wants to introduce a financial transaction tax unilaterally, no member of the European Union, because they say it makes no sense," Schaeuble said.

But "if there is a possibility [to introduce it globally] the government will campaign for it... and if we discover after the G20 summit in Canada in June that there is no chance for it in the foreseeable future, then and only then is there a real possibility in Europe...for a European financial transaction tax."

The German government will campaign for this but doubts are justified as to whether the U.K. as Europe's biggest financial center will be on board, he said. Alternatively, Germany will campaign for the introduction in the euro zone, he said.
 
Quote from Explorer:

http://online.wsj.com/article/BT-CO-20100521-704726.html?mod=WSJ_World_MIDDLEHeadlinesEurope

The introduction of a national financial transaction tax, as demanded by many German lawmakers, makes no sense, [Finance Minister Wolfgang Schaeuble] said, but added that Germany will campaign for the global introduction. If that isn't possible, a European implementation could be an option, but the approval of it is uncertain, he said.

"There is no one who wants to introduce a financial transaction tax unilaterally, no member of the European Union, because they say it makes no sense," Schaeuble said.

But "if there is a possibility [to introduce it globally] the government will campaign for it... and if we discover after the G20 summit in Canada in June that there is no chance for it in the foreseeable future, then and only then is there a real possibility in Europe...for a European financial transaction tax."

The German government will campaign for this but doubts are justified as to whether the U.K. as Europe's biggest financial center will be on board, he said. Alternatively, Germany will campaign for the introduction in the euro zone, he said.
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Well the good news is that the G20 isn't going to agree on a FTT but it does sound like Germany is hellbent on introducing some sort of FTT in the eurozone. I guess we'll see how this plays out going forward. I suspect Germany may back down on it's plans for a FTT after they are snubbed at the G20 in June and may settle on a financial activities tax...

-Guru
 
Quote from Explorer:

Germany can't just override another member state on taxation. Unanimity is required in key areas such as foreign and defence policy, social security and taxation issues.

Also note what Schaeuble said this morning:

http://imarketnews.com/node/13807

The minister (Schaeuble) reaffirmed that the German government will lobby for a financial transaction tax on the EU level. If the UK government blocked that, Germany would aim for the introduction of such a tax in the Eurozone, he said. However, he added that "I cannot promise a majority" for a financial transaction tax even on the level of the Eurozone.
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Thanks, and I stand technically-corrected. I know the EU doesn't work like the U.S. Senate with majority and super-majority (filibuster) voting, it requires unanimous voting. I meant to say that if the UK gets desperate with it's own financial crisis (pound) caused from further meltdown, the UK may bend to German wishes for a Eurozone FTT, considering that the UK already has a securities transaction tax in place. Achieving EU unanimous voting for a Euro Tax may be extremely difficult under normal conditions, but in crisis mode – if the meltdown gets worse – they may do what Germany wants as a political deal to keep Germany from threatening to opt out of the Euro bailouts including a potential UK bailout (if necessary).
 
Quote from Robert A. Green:

I meant to say that if the UK gets desperate with it's own financial crisis (pound) caused from further meltdown
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I wouldn't say the UK is in a crisis to be honest.
No rioting here.
12% budget deficit just like the US!
I think the new Con-Lib coalition should get on top of this and with banks paying big bonuses again you'll probably see tax revenues come in a little better than expected.

There has been a mini run on the pound of course, but whats new here, the pound has been falling for the last 100 years?!

Hopefully the UK doesn't bend to the will of the Germans, we usually don't.:D
 
Agree. I am hoping for a UK and full Eurozone recovery from a bailout that works as designed, as it has done so far in the US. It would be so hurtful to people to have a W-dip recession and big meltdown 2.0. My worries about a German-led FTT are conditional on the PIIGS crisis deteriorating much further and hopefully that does not happen! We accountants, like traders, always keep an eye out for the worst too. Hope for the best and be darn ready to fight against the worst.
 
ze germans hav gots a littles CRAZY..!!
sometimes its good, YA?? :)

I think they're getting a little freaked out about bailing out the PIIGS. I think in the UK's case its a pretty good thing we have nothing to do the bailout, from a selfish point of view of course.

We have plenty of problems in the UK to fix, but thankfully fixing Greece, Spain and Portugal is not one of them.

As draconian as a FTT is, there is a part of me that is curious as to how devastating it would really be. Hopefully it remains a curiosity...
 
Yesterday: (Cameron/Merkel meeting) The Conservative premier said he backed a "strong and stable" eurozone, although Britain is not a member, but stressed his centre-right government had agreed it would never cede any new powers to the European Union.

"They also openly clashed on issues such as new curbs on the trillion-dollar hedge fund industry, which the EU said this week it would seek after strong German lobbying.

"Cameron, whose Conservative party has strong ties to the City of London and the financial sector, said Britain would maintain its opposition.

"We do have our concerns because we don't think that hedge funds were the cause of the problems in our financial markets and in our economies," he said.

"Cameron declined to criticise Germany's surprise decision this week to unilaterally ban "naked short selling," the sale of bonds or shares by market players who neither hold the security nor have borrowed it to make their trade.

"But he said Europe must tackle the "real causes rather than just the symptoms" of the current crisis, including excessive debt, excessive deficits and failings of the banking and financial systems.

"Each country must have its own financial regulation in its own way," he added.

http://news.yahoo.com/s/afp/20100521/wl_uk_afp/germanybritaineudiplomacyfinanceeconomy
 
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