The European Union needs a budget that is modern and future-proof. Against the backdrop of current challenges and Brexit, the 2021-2027 multiannual financial framework needs a new focus. Negotiations are currently underway. The German Finance Ministry basically supports the European Commission’s proposals, but believes that they do not go far enough. Germany is in favour of a more far-reaching modernisation of the budget.

Value-added tax (VAT) fraud comes in many forms: it can range from the failure to declare and/or pay VAT and the fraudulent use of the right to deduct input tax, to what is known as VAT carousel fraud. This article describes what Germany does to combat VAT fraud and details how European administrative cooperation in this area has been enhanced.

On 30 October 2018, the heads of state and government of the African countries participating in the Compact with Africa attended a high-level conference hosted in Berlin by German Chancellor Angela Merkel. Olaf Scholz, who is advancing the initiative in cooperation with the other G20 finance ministers, welcomed the fact that German businesses are making a stronger commitment to Africa.

The meeting of the G20 finance ministers and central bank governors and the annual meetings of the IMF and the World Bank took place in Bali (Indonesia) from 11–14 October 2018. German finance minister Olaf Scholz was in attendance. The discussions focused on issues such as the mounting risks to global economic growth and the ways in which they can be addressed through joint action.

Good news for everyone who likes to read: European finance ministers paved the way for the equal tax treatment of digital media at the meeting of the EU’s Economic and Financial Affairs Council (ECOFIN) on 2 October 2018. The reduced rate of value added tax (VAT) can now be applied to e-books and e-newspapers. Previously, it could only be applied to print media.

In 2017, which taxes in Germany had the highest amounts of unpaid taxes, and how many years of imprisonment were imposed nationwide for tax crimes? These and other useful figures from the annual statistics pertaining to the prosecution of tax crimes and tax-related administrative offences in Germany are explained in this article.

Two years ago, Germany introduced legislation to give everyone access to a basic bank account. How was the EU’s Payment Accounts Directive implemented in Germany, and what effect has the new legislation had on social justice? The law also includes provisions that help consumers to switch banks, which has intensified competition among credit institutions.

It is ten years since the US investment bank Lehman Brothers collapsed, marking the beginning of the biggest financial crisis since the Second World War. In an op-ed for the Frankfurter Allgemeine Zeitung, German Finance Minister Olaf Scholz outlines the measures that were taken at the time to stabilise the financial markets and the lessons that can be drawn from the crisis.

The Federal Ministry of Finance has launched an initiative that aims to improve the links between the vast quantity of documents relating to the German government’s Wiedergutmachung (compensation and restitution) for crimes committed by the National Socialist regime and to make these records more accessible to victims, family members and researchers.

On 29 August 2018, Finance Minister Olaf Scholz and his French counterpart Bruno Le Maire concluded the annual summer university organised by the French employer federation MEDEF. Read the Minister's speech on "France-Germany: a win-win relationship".

The August edition of the Finance Ministry’s monthly report offers an insight into current Franco-German cooperation, not only at the government level, but also at the working level of the two finance ministries. One element of this is the Franco-German Seminar. Launched in 1999, the seminar entered its 10th cycle in Berlin in May 2018.

This article from the July edition of the Finance Ministry’s monthly report provides basic international comparisons of certain major tax types. The comparisons cover the member states of the European Union plus several additional advanced economies (the United States, Canada, Japan, Switzerland and Norway) and generally reflect the state of the law in these countries as of end 2017.

The G20 finance ministers gathered again in Buenos Aires on 21–22 July 2018 under the helm of the Argentine presidency. Their talks focused in particular on the risks posed by trade disputes. During the discussions, Finance Minister Olaf Scholz reiterated his strong support for free and fair global trade and underscored the importance of international cooperation. At the meeting, the G20 also endorsed a set of policy options for the future of work.

The global news service Bloomberg commends Olaf Scholz's achievements during his first four months as Finance Minister. Scholz is described as Germany’s most popular politician who provided stability during Chancellor Merkel’s coalition crisis. The article highlights the deputy chancellor’s "pro-European convictions and even-keeled presence", which have delivered key political breakthroughs in recent months.

On 29 June 2018, the IMF concluded this year’s Article IV consultation with Germany. Praising the impressive performance of the economy and public budgets in Germany, the IMF noted rising employment levels and the ongoing positive trend on the labour market. The Fund also stated that private and public investment will be necessary to safeguard jobs in the future.

Ahead of this weekend’s G20 meeting of finance ministers and central bank governors in Buenos Aires, the Argentinian newspaper El Cronista published an interview with Finance Minister Olaf Scholz. In the interview, Scholz emphasises that international cooperation and free trade are essential for global prosperity. He also discusses the financial package agreed between Argentina and the IMF as well as the country’s efforts in connection with the future of work and the digital economy.

Olaf Scholz, German finance minister and vice-chancellor, is the subject of a profile in The Economist magazine. Read more about his views on domestic budgetary policy and his ideas on how to deepen the euro zone and improve European sovereignty without jeopardizing the EU's overall cohesion.

The presidency of the Council of the EU rotates among the member states every six months. In July 2018, Austria took up the presidency as scheduled, presenting its programme to the EU finance ministers at the ECOFIN meeting in Brussels on 13 July. For the Eurogroup meeting on 12 July, items on the agenda included further steps to develop the monetary union, as well as an analysis of the euro area’s current economic and budgetary situation.

In 2009, the Federal Ministry of Finance tasked an independent commission of historians with researching the Reich Finance Ministry’s various areas of responsibility. This article sheds light on the Ministry’s role in confiscating Jewish assets and its involvement in financially exploiting Nazi-occupied territories to fund the war.

The chief economist’s last newsletter from July 2018 states that regulators have dealt effectively with well-known threats to financial resilience, but they rarely mention the consequences of delays and inaction in dealing with the problems of banks. Ludger Schuknecht and Levin Holle warn this might entail systemic problems.

The analysis of the European Union’s latest Ageing Report provided in the Finance Ministry’s June 2018 monthly report shows that the long-term sustainability of public finances in the EU member states continues to face major challenges as a result of demographic change. Germany is disproportionately affected by increases in age-related spending.

The heads of state and various government ministers from Germany and France convened in Meseberg on 19 June 2018, where they agreed on an extensive catalogue of European reforms. Documents relating to fiscal, budget and tax policy are presented here.

The German Ministry of Finance is pleased to announce the call for papers for the 2018 Inaugural Fiscal Policy Seminar. The seminar will take place in Berlin on 13/14 December 2018.

In an interview with German newsmagazine DER SPIEGEL on 9 June 2018 Federal Minister of Finance Olaf Scholz explained his take on further developing European integration. In this context the minister particularly called for an addition to national unemployment insurance schemes. As regards taxation matters the minister pointed to ongoing discussions on the European level.

G7 finance ministers and central bank governors met in the Canadian resort town of Whistler on 1–2 June 2018, with German Finance Minister Olaf Scholz and Bundesbank President Jens Weidmann representing Germany. The meeting’s main topic was the current trade dispute with the US. Various other issues relating to international cooperation in the area of finance were also discussed.

The International Monetary Fund and the World Bank Group held their annual meeting in Washington, D.C. on 18–21 April 2018. The G20 finance ministers and central bank governors also met for talks, notably discussing ways to further improve the resilience of individual countries and the global financial system.

The German Stability Programme for 2018 was approved by the federal cabinet on 18 April 2018. It contains projections of budgetary trends at all government levels. By submitting the updated Stability Programme the federal government fully complies with its obligation for the year 2018 towards the EU to submit national medium-term fiscal plans.

On 19–20 March 2018, the G20 finance ministers and central bank governors gathered in Buenos Aires for their first meeting under Argentina’s presidency. Germany’s new finance minister Olaf Scholz was also in attendance. Discussions addressed a wide range of key issues, focusing in particular on the shape of the global economy, financial market regulation, international tax policy and the fight against terrorist financing.

Olaf Scholz, the former mayor of Hamburg, has taken office as Germany’s Federal Minister of Finance. Bundestag members Bettina Hagedorn and Christine Lambrecht will be providing him with key support as Parliamentary State Secretaries.

In a joint paper, German and Italian finance ministers Peter Altmaier and Pier Carlo Padoan set out their ideas for redesigning the EU budget, taking into account the existing financial possibilities. Their proposals focus on a stronger promotion of structural reforms and European public goods, from which all EU citizens can benefit.

In recent years, EU state aid control has increasingly set its sights on tax policy measures. In this process, the European Commission and the European Court of Justice tend to apply a very broad definition of state aid. This results in considerable legal uncertainty regarding the classification of national measures and creates problems for companies and member states.

On 17 January 2018, Minister Peter Altmaier welcomed Portuguese Finance Minister Mário Centeno, the new president of the Eurogroup, to the Finance Ministry in Berlin. It was Minister Centeno’s first official foreign trip in his capacity as Eurogroup president, and he took the opportunity to participate in the “Finance Ministry in Dialogue” event series. Minister Altmaier invited Minister Centeno to visit Berlin after he was elected as Eurogroup president in December 2017.

The chief economist’s last newsletter from July 2018 states that regulators have dealt effectively with well-known threats to financial resilience, but they rarely mention the consequences of delays and inaction in dealing with the problems of banks. Ludger Schuknecht and Levin Holle warn this might entail systemic problems.

From 1 December 2016 to 30 November 2017, Germany held the presidency of the G20 and passed it to Argentina on 1 December 2017. In the finance track one of the major accomplishments was the launching of the G20 Compact with Africa. Significant advances were achieved in the areas of economic resilience, international financial architecture, international tax policy cooperation, financial market regulation, cybersecurity and remittances.