Germany’s SPD wants transaction tax a condition for joining banking union

Chancellor Angela Merkel’s potential coalition partners, the Social Democrats, want to make a proposed financial transaction tax a requirement for participation in a European banking union.

Germany is one of 11 eurozone countries that support the tax plan, which the European Commission estimates could generate as much as €35bn annually in its current form.

Only participating states will have a vote on the proposal. In January, the UK filed a legal challenge to the EU’s decision that allowed the 11 states to proceed.