“This tax should be made a condition for joining the Banking Union", Carsten Schneider, budget spokesman for the SPD, said in a written reply to questions. “For the SPD, it’s important that taxpayers in the future are no longer liable for banks.”
The SPD will push for using financial transaction tax revenue to fill the Single Resolution Fund when the party begins coalition talks with Merkel’s Christian Democrats on October 23, Schneider said.
Under Barnier’s plan, a designated bank levy would take 10 years to fill the fund. While transaction tax revenue would replace Barnier’s levy during the topping-up process, once the fund is full, the planned levy would kick in, Schneider said.
The SPD rejects Merkel’s preference for having a network of national regulators handle bank resolution. Last month, the party’s finance spokesman, Carsten Sieling, proposed putting the European Central Bank in charge of failing lenders in addition to the ECB’s oversight of banks, which is scheduled to begin in November 2014.
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