London Daily

Focus on the big picture.
Friday, Jun 20, 2025

German chancellor forced again to deny link to banking tax scandal

German chancellor forced again to deny link to banking tax scandal

Previously unseen emails put former Hamburg mayor Olaf Scholz back in spotlight over €300m fraud scheme
The German chancellor, Olaf Scholz, on Friday again denied allegations that he held a protecting hand over a local bank found guilty of a multimillion euro tax fraud scheme while he was mayor of Hamburg, as the centre-left politician was questioned by a state parliamentary committee in the northern city for a second time.

“I did not influence the Warburg tax procedure,” Scholz said at the start of the session. “There was no political influence on the tax procedure.”

Hamburg-based MM Warburg & Co, Germany’s oldest and largest private bank, is alleged to have swindled the German state out of an estimated €300m through the so-called “cum-ex” scheme between at least 2007 and 2011.

Cum-ex deals involve trading shares at high speed on or just before the dividend record date – the day the company checks its records to identify shareholders – and then claiming two or more refunds for capital gains tax that had in fact been paid to the state only once.

The name refers to rapidly traded shares with (“cum”) and without (“ex”) dividend rights. Last year the German federal court of justice ruled that such schemes were and always had been criminal acts of tax evasion.

Scholz, now the head of Germany’s three-party coalition government, agreed in September 2016 to meet Warburg’s boss at the time, Christian Olearius, while the bank was already under investigation by financial authorities and faced having to pay back €47m in taxes.

Shortly after the meeting, Warburg was told by Hamburg authorities that it did not have to pay the bill after all – a decision partly revoked a year later by the federal finance ministry in Berlin.

On Friday Scholz dismissed as “suppositions and insinuations” claims made by opposition politicians that he had influenced the tax authorities’ waiver by asking Olearius to forward a document outlining his defence to the city’s state minister for finance.

Even though the allegations centre on events that took place six years ago, the affair has captivated German national media again in recent weeks due to the emergence of previously unknown details.

This week it emerged that investigators working for the public prosecutor in Cologne had seized emails from Scholz’s former office manager that suggest the then mayor may have deleted data pertaining to the matter. The Frankfurter Allgemeine Zeitung said the emails clearly “incriminate” Scholz.

The meeting between Scholz and Olearius was described in the former Warburg boss’s seized diary. This was cited in court and leaked to the Süddeutsche Zeitung, though the politician said he could not remember what they talked about when first questioned by a parliamentary committee.

He said he had given no “special treatment” to the banker, whose lending house plays a powerful role in Germany’s second largest city and played a part in rescuing the local shipping company Hapag-Lloyd from a sale in 2008.

At the chancellor’s annual summer press conference in early August, Scholz sounded increasingly frustrated when pressed by journalists on the affair.

“An incredible number of people have been interviewed, an incredible number of files have been scrutinised,” the Social Democratic party (SDP) politician said. “And if you follow the press coverage about the relevant hearings, there’s always the same result: no political influence was exercised when it came to the decisions. I am convinced that this understanding won’t change, that’s very clear after two and a half years.”

Prosecutors in Hamburg backed the chancellor’s stance on Tuesday this week, rejecting a legal complaint seeking to open criminal proceedings against Scholz and ruling they had so far seen no reason to investigate him.

Delegates of the conservative Christian Democratic Union (CDU) and leftwing Die Linke in Hamburg want to expand the investigative committee’s reach to also look into the cum-ex activities of Hamburg Commercial Bank (formerly HSH Nordbank), which would probably lead to more appearances by the chancellor.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×