Friday, November 23, 2012

BERLIN—Germany's opposition Social Democrats and Greens are set to block passage Friday of a Swiss-German tax accord, scuttling a controversial deal to get Swiss banks to hand over taxes owed by German citizens with secret bank accounts there.
The bilateral treaty was passed by Chancellor Angela Merkel's center-right coalition parties in the lower house of parliament, but the upper house, which represents Germany's 16 states, must still ratify the treaty for it to become law. The left-leaning Social Democrats and Greens, the main opposition in the lower house, have an effective majority in the upper house and can block the initiative.
Peer Steinbrück: Greece in worse shape than Merkel admits
Peer Steinbrück, head of Germany's opposition Social Democrats, has urged Angela Merkel to delay Germany's next budget until the uncertainty over Greece has been resolved.
Steinbrück (who could potentially form a grand coalition with Merkel after next autumn's elections) added that Greece will require assistance until the end of this decade.
He also warned that German taxpayers will ultimately pay the price.
Reuters has the news snaps, and now you do too:
• GERMANY'S STEINBRUECK SAYS CLEAR THAT GREECE WILL NOT BE ABLE TO RETURN TO CAPITAL MARKETS IN THIS DECADE
• GERMANY'S STEINBRUECK SAYS MERKEL'S GOVERNMENT SHOULD PUSH BACK VOTE ON GERMAN BUDGET UNTIL THERE IS CLARITY ON GREECE
• GERMANY'S STEINBRUECK SAYS CANNOT FILL GREEK FINANCING HOLE WITH MIX OF PIECEMEAL MEASURES

1 comment:

Anonymous said...

The EU Commission, which drafts EU laws, has called for an increase of 4.8% on the 2007-2013 budget - a position supported by the European Parliament and many countries which are net beneficiaries, including Poland, Hungary and Spain.

Continue reading the main story
Possible outcomes
A deal after intense negotiations which may continue into the weekend
Failure to agree and a follow-up budget summit
If no agreement is reached by the end of 2013, the 2013 budget ceilings will be rolled over into 2014 with a 2% inflation adjustment, amid uncertainty over long-term EU projects
Flanders: Dealing in small change
Viewpoints: UK role in EU

The UK is the most vocal of EU member states seeking cuts in the budget to match austerity programmes at home.

"No, I'm not happy at all," Mr Cameron said about Mr Van Rompuy's offer.

A Downing Street statement said Mr Cameron had stressed the importance of the UK keeping its budget rebate, worth 3.5bn euros in 2011.

The statement called the rebate "fully justified". The EU Commission and some EU governments want the rebate scrapped.