Due to a lack of progress at the European Union level, the Left party is calling for the introduction of a financial transaction tax in Germany, according to a position paper published by the party and reported by the “Rheinische Post.”
The paper states that the call for an FT tax is more relevant than ever. Christian Görke, the financial policy spokesperson for the Left, told the newspaper that in high-frequency trading, thousands of transactions involving massive sums of money occur in incredibly short periods-mere milliseconds-yet these million-euro profits have no bearing on the wider economic stability.
While the Left is advocating for a 0.1% tax rate on the EU level, they propose a nationwide transitional solution in Germany because the EU process is currently stalled. Janis Ehling, the federal director of the Left, added that the tax would help inject a necessary brake into runaway financial markets, thereby protecting security and prosperity for everyone. The potential revenue could be used to fund crucial investments in renewable energy and expand the national railway system.
This initiative is also receiving support from the German Trade Union Confederation (DGB). Stefan Körzell, the DGB’s vice-president, informed the newspaper that the federal government committed to supporting the financial transaction tax in its coalition agreement. He urged the government to finally deliver and push the project forward with full momentum, while also stressing the need for the rapid implementation of the EU Commission’s policy proposal. Körzell noted that since the revenue would go to the federal government, it would significantly reduce pressure on the federal budget without burdening the real economy or ordinary citizens.
For several years, the discussion regarding a financial transaction tax-which would apply to specific transactions involving financial instruments-has been held at the EU level without reaching a final agreement.
