German Social Democrats support EU tax

Germany’s Social Democrats have spoken out in favour of an EU tax in a new policy manifesto released on Monday.

The paper, quoted in the German press, regards the EU and a strengthened European welfare model as a positive answer to the challenges posed by globalisation.

To back up Europe’s social role, Germany’s centre-left, part of Berlin’s grand coalition government, supports an EU tax.

The policy document will be welcomed by Austrian chancellor and EU presidency holder Wolfgang Schüssel, who this weekend again called for the need to create a European tax.

But the European commission and other member states are cautious about the controversial proposal.

In an interview with Parliament Magazine last week, EU budget commissioner Dalia Grybauskaitë, warned that an EU tax could be politically and economically damaging.

“If we talk about an EU tax, it should only be as a replacement of direct treasury payments from the governments. Not something that citizens should pay additionally,” she said.

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