Friday December 19, 2014 Search
Weather | Athens
17o C
10o 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)  
Workers rush to get early retirement
Piraeus Containter Terminal goes from strength to strength
Moscovici: Creditor inspections to become less frequent and ‘lighter’
Property capital gains tax halt
Tsipras admits there could be hard days ahead
SYRIZA leader Alexis Tsipras said on Friday that he is determined to implement his party’s economic program if it comes to power but admitted that it would experience a challenging period. “...
Public medical centers keeping up despite shortages
Despite having just 1,050 doctors, medical centers belonging to Greece’s public health system (PEDY) saw more than 200,000 regular and emergency patients, made over 3,500 house calls and iss...
Inside News
SOCCER
Abidal cuts short playing career at Olympiakos
Former France and Barcelona defender Eric Abidal announced his retirement from football on Friday, a day before his last match. Abidal said he will finish after playing for Olympiakos agains...
SOCCER
PAOK loss at Giannina brings Olympiakos to within a point
The bad losses that PAOK and Panathinaikos suffered on the road on Thursday allowed Olympiakos to gain significant ground on the table and come to within one point from the top after the mid...
Inside Sports
COMMENTARY
New weapons of diplomacy
Hollywood screenwriters couldn’t make it up: That Sony, one of the world’s biggest film producers, would be forced to pull a comedy about the assassination of North Korea’s dictator after a ...
EDITORIAL
Oblivious to change
The world around us is undergoing many important changes while we sit around stewing in our own juices. US President Barack Obama is actually talking with Cuba’s Raul Castro, for example, bu...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tsipras admits there could be hard days ahead
2. Public medical centers keeping up despite shortages
3. Workers rush to get early retirement
4. Piraeus Containter Terminal goes from strength to strength
5. Moscovici: Creditor inspections to become less frequent and ‘lighter’
6. Property capital gains tax halt
more news
Today
This Week
1. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
2. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
3. Greek PM Samaras confronts peril putting his Greek transformation to vote
4. Independent Greeks leader backs MP's bribery claims, threatens to release video [Update]
5. Gov't spokeswoman says bribery claims 'badly-played charade,' heralds legal action if evidence not produced
6. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. Europe's drama in Greece needs final act to avoid tragedy
6. High stakes
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.