[ad_1]
\n<\/p>\n
BERLIN (AP) \u2014 Germany and Austria are at odds over plans for a new tax on financial transactions, raising more questions about the chances of the levy becoming reality after years of talks.<\/p>\n
The two countries are among 10 in the European Union that have been working on a financial transaction tax after a wider agreement proved elusive. German Finance Minister Olaf Scholz has proposed a levy of 0.2% on share purchases and wants to use the proceeds at home to help top up the pensions of low-paid people.<\/p>\n
However, Austrian Chancellor Sebastian Kurz objects that the plan would spare highly speculative financial instruments and derivatives, and would instead hit small investors at a time when they are buying shares because bank interest rates are ultra-low.<\/p>\n
\u201cWe are for the financial transaction tax as a tax on speculators, as was originally envisioned,\u201d Kurz said after meeting German Chancellor Angela Merkel in Berlin on Monday. \u201cBut the current proposal by Finance Minister Scholz is one that we reject.\u201d<\/p>\n
Merkel said Germany regrets the Austrian position, noting that while many favor a financial transaction tax, pinning down details has proven difficult.<\/p>\n
\u201cWe can of course keep talking \u2014 it just can’t be the case that, with a change, another five countries bail out,\u201d Merkel said at a joint news conference. \u201cSo it’s a very difficult matter.\u201d<\/p>\n<\/div>\n