By choosing not to use the economic downturn as an excuse for more wasteful spending, Germany may have avoided Obama’s big mistake, but that does not mean German conservatives and Angela Merkel are supporters of economic liberty and individual freedom. Not even close. A good (or should I say “bad”) example of Merkel’s statist mindset is her push for a tax on financial transactions. And not just a German tax. She wants a global tax. And not just for the typical political reason of wanting more of other people’s money. Merkel has a megalomaniacal view that “every product, every actor, every financial market participant should be regulated.” Ludwig Erhard must be spinning in his grave.
“We will continue to work for a tax on the financial markets,” Merkel said in a stormy debate in parliament on her government’s 2011 budget. “The finance minister is doing this in several discussions and we are going to try to persuade as many countries as possible. Unfortunately, the world is not always as we would wish … but we are not going to give up,” she added. At a meeting of European Union finance ministers earlier this month, members of the 27-country bloc clashed over the idea of imposing a tax of financial market transactions in Europe. The proposal, driven by France and Germany…, has run into stiff resistance from several countries, notably Sweden and Britain. At the level of the Group of 20 developed and developing nations, there is still more discord, with Canada and emerging market economies leading the battle against it. A G20 summit takes place in South Korea in November. “We are sticking to the principle that every product, every actor, every financial market participant should be regulated so that we have an overview of what is happening on the financial markets,” Merkel said.