Levy on German Banks Proposed

Germany’s government has put forward a proposal which is likely to be carried out later this year: a levy on the big banks that received bailouts towards the end of 2008 (the height of the financial crisis for those who were asleep over the last 18 months).  Around €500 billion was handed out to banks to prevent complete collapse and it was the taxpayer who bore the costs.

Now, Germany wants to prevent banks from taking more risks and wild speculation on currency exchange, shares and other financial markets.  It wants banks to lose any reliance they might have had that the state will step in and mop up the mess if another disaster should occur.

So far, other large economies have not been so hardline – the UK government has introduced a ‘super tax’ on financial sector bonuses while the US has introduced a similar plan.

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