Tweet

03.06.12

The leader of Germany's main opposition party has told Chancellor Angela Merkel that her government must enact a financial transaction tax to ensure his party's support for the European fiscal treaty.

The German government must secure a two-thirds majority of support for the treaty in the parliament in order to have it ratified.

Frank-Walter Steinmeier said that his party would only back the treaty if they had an assurance that "there will be a clear Cabinet decision to tax financial markets."

Chancellor Merkel backs the tax in principle but has warned that implementing such a charge across Europe could have a real impact.

Both sides will meet to negotiate an agreement on June 13th.

The Irish voters supported the treaty in a referendum that saw 60 percent of voters backing the fiscal treaty.