German lawmakers said they would ask to open an investigation into the possible involvement of Chancellor Olaf Schulz as mayor of Hamburg in a tax fraud that cost the government millions of euros. The chancellor is already facing a similar parliamentary inquiry in Hamburg, one of Germany’s 16 federal states
German Chancellor Schulz is facing a parliamentary tax fraud investigation. German lawmakers said today that they are calling for an investigation into the possible involvement of current Chancellor Olaf Schulz as mayor of Hamburg in a tax fraud that cost the government billions of euros. The investigation will examine whether political figures helped the private bank MM Warburg avoid paying back tax rebates it fraudulently received in Hamburg, MPs from the conservative parties told a news conference.
The investigation will also examine whether Schulz’s previous statements were “credible,” said Matthias Midberg, a member of parliament in the Bundestag. Schulz, who was mayor of Hamburg from 2011 to 2018, has repeatedly had to reject claims that he was involved in the decision to accept the illegal benefit.
The chancellor is already facing a similar parliamentary inquiry in Hamburg, one of Germany’s 16 federal states. A special committee is investigating why the local financial authorities canceled in 2016 a proposal to collect $48 million in taxes from the bank.
Financial experts estimate that the tax plan of those involved has left a billion-euro hole in Germany’s public finances. Indictments have already been filed against dozens of people in Germany, including bankers, stock traders, lawyers and financial advisers.
Warburg Bank was eventually forced to return tens of millions of euros under pressure from the federal government under former Chancellor Angela Merkel. To open an investigation, a quarter of the members of parliament in the Bundestag, 184 members, are needed. The conservative group in the opposition has 197 members of parliament, so the chance of an investigation is not small.