Friday October 24, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bundesbank says capital levy is an option for stressed countries

By Stefan Riecher

Germany’s Bundesbank said the imposition of a one-time capital levy on private assets could be an option for countries facing extraordinary financial stress.

“In the exceptional case of a country’s looming insolvency a one-time capital levy could be more successful than the other relevant options,” the Bundesbank said in its monthly report published today. “As long as the levy is tied to assets that have been accumulated in the past, and is credibly seen as a one-off, the people subject to the levy could only avoid it in the short term with difficulty.”

The central bank’s comments come three months after the International Monetary Fund suggested that “the sharp deterioration of the public finances in many countries has revived interest in a capital levy.” The Washington-based organization’s comments made front-page news in European newspapers, prompting the IMF to clarify that it “emphatically does not recommend” the measure.

While such a one-time tax may be preferable to bail-outs of indebted European countries, it isn’t risk-free and should only be applied as a last resort, the Bundesbank said.

A capital levy “should only be used in absolutely exceptional circumstances,” the Frankfurt-based central bank said. “All in all, the imposition of a one-time net capital levy comes with significant risks and the preconditions for a successful implementation can’t be met easily.”

[Bloomberg]

ekathimerini.com , Monday Jan 27, 2014 (14:04)  
Tax revenues up by 1 bln euros in 2nd quarter, public sector wages down
ECB bank assessment to show 6-billion-euro capital gap, Citi says
EU says Turkey´s energy hunt off Cyprus is a a ´serious concern´
ECB vies for third time lucky in European stress tests
Greek private workers´ union calls 24-hour strike for November 27
The country's umbrella union representing workers in the private sector, known by its Greek acronym GSEE, on Friday called a 24-hour strike for November 27 to protest austerity measures bein...
Finance Minister appeals for support for amendments ahead of vote
Finance Minister Gikas Hardouvelis on Friday called on MPs across the political spectrum to support a series of legislative amendments proposed by his ministry, including a recommendation to...
Inside News
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
BASKETBALL
Greens succumb to first loss at Bayern
Panathinaikos’s unbeaten run in all competitions came an end on Thursday as the Greek champion lost 81-75 at Bayern Munich for the Euroleague. Bayern is a team that improves every year, and ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tax revenues up by 1 bln euros in 2nd quarter, public sector wages down
2. ECB bank assessment to show 6-billion-euro capital gap, Citi says
3. EU says Turkey´s energy hunt off Cyprus is a a ´serious concern´
4. Greek private workers´ union calls 24-hour strike for November 27
5. Finance Minister appeals for support for amendments ahead of vote
6. Credit line only open to Greece if it meets economic targets, sources say
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. ECB vies for third time lucky in European stress tests
3. Clocks to go back 1 hour on Sunday
4. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. Cyprus president to be released from hospital on Friday following readmission
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Coalition shooting itself in the foot
4. Greece must stick to reforms, says Schaeuble
5. At least 11 banks to fail European stress tests, three in Greece, report says
6. Cyprus to block Turkey's EU talks after EEZ violation
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.