Westerwelle Seeks 'Fair' German Taxes

by Ulrika Lomas, Tax-News.com, Brussels

19 May 2010

Leader of Germany’s Free Democratic Party (FDP) Guido Westerwelle has once again insisted that ‘fair taxes’ remain the party’s objective for the current period of governance.

Despite Chancellor Angela Merkel’s recent announcement that any proposed tax cuts would be put on ice until 2013, following the decisive election defeat of the black-yellow government in North Rhine-Westphalia, Guido Westerwelle underlined the fact that both he and the Chancellor are unwavering in their commitment to reducing the tax burden on low- and middle-income earners in this legislative period.

While acknowledging that the government must first explore what is achievable given the reduced scope and lack of a parliamentary majority, Westerwelle nevertheless confirmed that the party has not given up on its convictions.

Regarding the bank crisis, FDP leader Westerwelle emphasized the need to introduce reliable rules and to regulate the financial markets. Arguing that banks, creditors and speculators must all be required to contribute financially to the consequences of the crisis, Westerwelle highlighted the government’s plans to introduce a bank levy in Germany.

Westerwelle also confirmed the government’s support for the introduction of a financial activities tax as a suitable instrument for targeting high-risk activities, as advocated by the International Monetary Fund (IMF). Echoing the views of the IMF, Westerwelle expressed his reservations regarding a financial market transactions tax, given that it can adversely affect savers as well as speculators.

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