Free Trial

Germany: Pressure grows on Scholz over tax scam ties

German Chancellor Olaf Scholz arrives for the weekly cabinet meeting at the chancellery in Berlin, Germany, Wednesday, Aug. 10, 2022. (AP Photo/Michael Sohn)

BERLIN (AP) — Germany's main opposition party has called on Chancellor Olaf Scholz to explain his role in a large-scale tax evasion scam while he was mayor of Hamburg.

Scholz has been dogged by questions about meetings he had with private bank M.M. Warburg in 2016 and 2017. Hamburg officials later dropped demands for the bank to repay millions of euros in tax refunds it had wrongly claimed for share trades.

Dozens of bankers are being investigated in connection with so-called cum-ex share transactions that are said to have cost the German state billions.

Scholz has denied wrongdoing and claimed not to recall details of his meetings with Warburg. But Thorsten Frei, a leading lawmaker with the center-right Christian Democrats, said recent revelations about 200,000 euros in cash being found in a safe belonging to a close party associate of Scholz raise further questions about the cum-ex affair.

“Olaf Scholz needs to explain himself," Frei said in an interview published Thursday by German media group RND.

The chancellor is holding his first annual summer news conference in Berlin on Thursday, during which the issue is likely to feature prominently.

Scholz, who was finance minister under Angela Merkel from 2018 to 2021 and became chancellor last December, will also face questions over Germany's support for Ukraine, his government's efforts to tackle inflation and a looming energy crisis and the coronavirus pandemic.

Should You Invest $1,000 in RLI Right Now?

Before you consider RLI, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and RLI wasn't on the list.

While RLI currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

A Beginner's Guide to Investing in Cannabis Cover

Unlock your free copy of MarketBeat's comprehensive guide to pot stock investing and discover which cannabis companies are poised for growth. Plus, you'll get exclusive access to our daily newsletter with expert stock recommendations from Wall Street's top analysts.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

Don’t Miss These Top 3 Defense Stocks Set To Gain
Triple-Digit Gains: These 4 Nuclear Stocks Have Even More Upside Ahead
3 Made in America Stocks Under $20 You Need to See!

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines