German parties strike deal on financial market tax

The German government and the main opposition parties have agreed on the principles of a tax on financial market transactions. The deal is essential for German parliamentary approval of the EU fiscal compact. 

The accord has been thrashed out in a joint working group made up of the conservative-led centre-right government and the opposition Social Democratic Party (SPD) as well as the Green Party.

According to SPD chairman Sigmar Gabriel, the compromise was based on an EU Commission proposal for a financial transaction tax, and marked a complete "180 degrees" U-turn in the position of the government.

"The agreement is a first big step towards overcoming the eurozone debt crisis," Gabriel told reporters in Berlin on Thursday.

Read more German parties strike deal on financial market tax | Business | DW.DE | 07.06.2012