German banks say taxes have reached their limit

25th October 2010, Comments 0 comments

The German banking federation BdB on Monday slammed proposed and existing taxes on the sector, insisting that fees had reached "the limit of tolerance."

In a sharply worded statement, German banks said they feared that fiscal measures would "not allow them to be competitive internationally."

In particular, the federation complained of excessive bank levies, draft taxes on profits and financial activities and strict rules on executive pay.

"Healthy profits are necessary to create capital and finance growth of the German economy," the BdB said.

"We call on political leaders ... to support German banks," said the federation, headed by Josef Ackermann, chief of Germany's biggest bank, Deutsche Bank.

Germany was forced to bail out banks that were hit by the international financial crisis with taxpayer funds and the government is now trying to take measures to prevent a repetition of such a meltdown.

© 2010 AFP

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