Germany elects a new parliament on Sept. 26, with potential ramifications for its financial industry.
Here are details on how the parties in the running to lead the next government would like to shape finance, with the Green party offering some of the most concrete proposals:
Chancellor candidate: Annalena Baerbock
* Investment banking should be separated from banks’ deposit and lending businesses.
* Regulation gaps for so-called shadow banks, payment providers and fintechs need to be closed.
* Auditors should not be allowed to advise and audit corporations at the same time.
* Public-sector banks should play a pioneering role in the “green financial turnaround”.
* Climate and environmental risks taken on by financial firms should be backed by capital.
* The federal government should be fully responsible for combating money laundering.
* The Green platform is moving in a direction of stricter regulation and state intervention, experts say.
* “Green government participation could make it even more difficult for banks,” said Michael Holstein, chief economist at DZ Bank.
Chancellor candidate: Armin Laschet
* Compared to the Greens, the conservative alliance of Chancellor Angela Merkel’s CDU and the Bavarian CSU has put forward few concrete measures for the finance sector, especially with regard to promoting environmental sustainability in the economy.
* The conservatives say Germany should be a leading location for finance, especially products focused on sustainability.
* They aim to further develop European banking and capital market union.
* They vow not to introduce a wealth tax, calling it a brake on prosperity.
* Frankfurt should be the seat of a new European Union authority to fight money laundering.
Chancellor candidate: Olaf Scholz
* The centre-left Social Democrats, the party of the current finance minister, Scholz, want to give Germany’s financial watchdog BaFin greater powers to oversee money laundering.
* They say currencies, including digital ones, must not be privatised.
* The party favours a wealth tax to generate revenue for states, and a financial transaction tax in line with some other European Union countries.
The business-friendly Free Democrats, under party leader Christian Lindner, could participate in a new government but will not lead it. They are calling for taxes to be lowered for businesses, and red tape eased.
(Reporting by Patricia Uhlig and Christian Kraemer; Writing by Tom Sims; Editing by Kevin Liffey)