A left turn drove the rich out of Germany, moving billions of euros to Switzerland

Olaf Scholz’s Social Democrats and the Greens want a wealth tax again

The current Chancellor side by side with Armin Lashet at the last debate

A potential left turn in the German election scared the millionaires and they moved assets en masse to Switzerland. If the center-left Social Democrats (SDP), the far-left Left and the Greens come to power, the reintroduction of a wealth tax and a tightening of the inheritance tax could be on the political agenda, bankers were quoted as saying by Reuters.

“This is a very popular problem for the super-rich,” said a German-based tax lawyer with extensive operations in Switzerland, adding: “Entrepreneurial families are very worried.”

The main candidates for chancellor are Armin Lashet, representing Merkel’s party, the Christian Democratic Union / Christian Social Union (CDU / CSU), current Finance Minister Olaf Scholz of the PSD and Analena Burbock of the Greens.

The first results of the exit polls foretell that the negotiations for a coalition will be long and difficult. According to

the projected results of the CDU and

PSDs have an equal share of the vote

– almost 25% each

The Greens receive the expected 15% support, the Free Democratic Party of Germany – 11% of the vote, as does the far-right “Alternative for Germany”. 5% of Germans voted for the “Left”. This is indicated by the forecasts of the German television ARD.

However, the other social media outlet that launched the exit poll, ZDF, further confused the bill by announcing that the Social Democrats take 26%, 2 points more than Lashet’s Christian Democrats.

However, this does not give a clear picture. Not only is there practically no difference between the leading parties, but a large number of voters chose to vote by mail. (how this happens – see in the box). Therefore, the name of the future chancellor and the composition of his parliamentary majority will be finally known in a few days.

In addition to the Bundestag, Germany also elected a parliament in the northeastern state of Mecklenburg-Vorpommern on Sunday, as well as a new mayor of the capital, Berlin. A total of 47 parties took part in the parliamentary vote, most of which will not cross the 5 per cent barrier needed to enter the lower house of parliament. In its current composition, the Bundestag has 7 parties.

The result of the vote remains unpredictable, as the difference between the two main parties was within the statistical error until recently. Studies in recent weeks have shown that

voters prefer

namely the enemies of the rich

from the Social Democratic Party. The latest poll was published on September 23, according to which the PSD continued to hold the lead with 26% voter support. The HDZ / HSS party union can count on 22% of the vote, according to the poll.

Against the background of growth in support for the PSA, data from the Bank for International Settlements show that deposits of German households and companies

in banks in Switzerland are

increased by almost $ 5 billion.

up to $ 37.5 billion

in the first quarter of 2021 and this does not include stocks, bonds or financial products. No newer data is available, but insiders say the influx has continued. “Many rich people, especially entrepreneurs, fear that there will be a left turn in Germany, regardless of the outcome of the election,” said Florian Dursellen, head of Europe at LGT Switzerland’s wealth manager.

One of the Swiss top bankers states: “I know a number of German entrepreneurs who want to have support outside Germany if things get too red (left) there.”

Simply transferring money to a bank account in Switzerland, on the other hand, no longer helps. Under tremendous international pressure, the Swiss are already sharing such account data with tax authorities in customers’ home countries.

The outcome of the vote was unpredictable, mainly because nearly one in three German voters decided at the last minute who to vote for. In an attempt to win the votes of the hesitant, the two main opponents fought a pre-election battle until the last moment.

The candidate of the conservative HDZ / HSS bloc, Armin Lashet, sought the help of the outgoing Angela Merkel, who addressed the voters at the last pre-election rally on Friday with the words: “You decide who will rule Germany. I think we all agree that the future government must work for prosperity, security and peace. “

On the final straight, the Conservatives bet on a confrontation with the Social Democratic Party, which led the polls.

Lashet warned that

Germany can turn left,

if the competitor

his Olaf Scholz won

elections and entered into a coalition with the Left, a party that unites former GDR communists and former far-left Social Democrats.

The current Minister of Finance, Scholz, called on Germany, together with France, to ensure that Europe can move forward. “In a world of 10 billion people soon, it is important to create a stronger EU, because otherwise we will not have a role,” he said.

Laschet also stressed the need for a more sovereign and stronger Europe, including militarily. “We need to start joint projects and armaments projects in order to be able to act after the United States withdraws, and that is a task that the next German government must fulfill,” he said. During the dispute, Armin Lashet also voiced support for the Nord Stream 2 gas pipeline, but called for guarantees for the transit of natural gas through Ukraine. “If Russia questions this, the project will be stopped immediately,” Lashet said.

In the debates so far, the candidates have remained silent on the question of who would be their preferred partner. 374 deputies are needed to form a ruling coalition in the new Bundestag. Arithmetically, this can currently be achieved by the HDZ / HSS and the SDP, which would be a continuation of the current ruling coalition. However, many other combinations are possible, for which we have to wait for the final results of the vote.

How dialing works

of the Bundestag by post

Elections for the German parliament are held every 4 years. On September 26, the Germans elect their 20th Bundestag. Following the vote, at the suggestion of the German president, the new parliament will elect a chancellor.

Just over 60 million citizens are eligible to vote, while almost 10 million without a German passport do not. Approximately one in six people in the country pays their taxes in Germany and is part of society in many other ways, but is disenfranchised due to a lack of a passport.

About 40% of voters decided to vote by mail. Due to the pandemic, the share of postal votes in the local elections in 2021 was significantly higher than in previous years. This is also expected for the federal elections.

Voters express a wish to vote by mail in the municipality in which they have their main residence. Once an envelope voting notice is submitted, voters receive their documents.

The postal vote was to be sent to the polling stations no later than 6 pm on Friday, September 24. In exceptional cases, anyone who did not do so due to illness could vote by mail until 3 pm on Sunday.

The German electoral system is a mixed type – half of the seats are formed on a majority basis, the other half – on a proportional basis. Accordingly, the ballots have two parts – for the first vote, which votes for a particular person, and for the second, which is for a particular party. Each constituency can send only one politician to the Bundestag – the one with the most votes.

The second vote is actually the more important – with it the voter determines the ratio between the parties. The results of the first and second electoral votes are also decisive for the total number of members of the Bundestag, who then elect the chancellor. Parties that do not cross the 5% barrier have no chance of sending representatives to the Bundestag.

There are two ways to vote abroad. If you live in Germany but are currently on holiday abroad, you can request voting documents by post at an address abroad. Voters pay the postage themselves. People who were not registered in Germany had to apply by post to the municipality in which they were last registered in order to be entered on the electoral roll.

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