Stability Levy for German Banks
Wednesday, March 31, 2010 22:10The German government has plans to make banks pay into a fund to cover the costs of future financial bail-outs approved.
The so-called “tax stability”, which is expected to increase about 1.2 billion euros (£ 1bn), will work closely with other countries, such movements should be observed.
Germany Finance Minister, Wolfgang Schäuble expected to draw up the legislation by the summer.
Critics dismissed the charge as an offer for the benefit of regional elections next win.
The government in France is considering a similar charge, while in the United Kingdom, the conservative opposition says it will establish a fund if it wins the forthcoming general elections.
The British Labour government imposed a tax on one-time bonuses in the financial sector, but has stopped short of imposing a levy on banks.
Mr Schauble said the German fund would have enough money to future risks without “damage to the ability of banks to promote the process of economic recovery or restructuring” to increase limit.
Germany’s opposition parties say, the fund will bring some money and have dismissed the plan as a political move before an important state election in May.
French Finance Minister Christine Lagarde said that the German plans “will be very useful for us” considering French responses to the financial crisis.
“We are basically in agreement on the goal – that’s, [banks] charge …. to prevent systemic risk,” she said.
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