Background: Germany's government has approved a financial bill that places a new tax on banks, to help troubled financial institutions ward off future crises. The move follows similar pledges made by France and the U.K. Full story >>
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On Germany's new bank tax, we have Professor Patrick Chovanec from Tsinghua University School of Economics and Management joining us in the studio. Hi Patrick...
1. Germany's just reported a doubled government deficit for the first half of this year. Do you think the new bank tax is related to the country's mounting deficit?
2. But the added costs will deal a big blow to the banking sector. Are there any possible adverse effects on the economic growth for the region?