23 March 2010

Germany proposes Bank Levy

It's pay-back time in Germany. The government, run by Angela Merkel of the conservative CDU party and her coalition party the FDP (headed by foreign minister Guido Westerwelle) are set to introduce a levy on banks for the massive bailouts they received during the financial crisis.

The levy is set to dissuade banks from relying on the state to rescue them in future, if they reach critical moments like those of the end of 2008.

Germany is so far the only country which is proposing to carry out such an action. Other big economies like the US and UK have set up a tax on financial sector bonuses to prevent further risk-taking, espcially through speculative currency trading or shares dealing.

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