The Finance Committee 2 “The Finance Committee deals with the tax system and seeks to ensure a fair balance between government revenues and the tax burden on the public. It therefore has a major influence on our country’s eco- nomic power. In the current elec- toral term, the taxation of digital business models is an important issue. In addition, the further development of European financial markets regulation is at the centre of the Committee’s work. The aim is to achieve stable financial markets which enable people to accumulate wealth, which supply businesses with the capital they require, and which facilitate ­innovation.”

Bettina Stark-Watzinger, FDP Chairwoman of the Finance ­Committee

3 The German ’s decisions are prepared by its committees, which are estab- lished at the start of each elec- toral term. Four of them are stipulated by the Basic Law, the German constitution: the Committee on Foreign Affairs, the Defence Committee, the Committee on the Affairs of the and the Petitions Committee. The Budget Committee and the Committee for the Rules of Procedure are also required by law. The spheres of respon- sibility of the committees essentially reflect the Federal Government’s distribution of ministerial portfolios. This enables Parliament to scruti- nise the government’s work effectively.

The Bundestag committees The German Bundestag sets political priorities of its own by establishing additional committees for specific sub- jects, such as sport, cultural affairs or tourism. In addition, special bodies such as parlia- mentary advisory councils, The committees discuss and committees of inquiry or deliberate on items referred study commissions can also to them by the plenary. They be established. The commit- also have the right to take up tees are composed of mem- issues on their own initiative, bers of all the parliamentary allowing them to set priorities groups, reflecting the balance in the parliamentary debate. of these groups in the German When necessary, they draw Bundestag. The distribution on external expertise – usu- of the chairs and deputy ally by holding public hear- chairs among the parliamen- ings. At the end of a commit- tary groups also reflects their tee’s deliberations, a majority relative strengths in the ple- of its members adopt a recom- nary. In the current electoral mendation for a decision and term, the committees have a report, which serve as the between nine and 49 mem- basis for the plenary’s deci- bers. sion.

5 Whenever money matters are at stake, the Finance Com­ mittee has an important role to play. With 41 members, it is one of the “heavyweights” among the Bundestag’s com- mittees. Chaired by ­Bettina Stark-Watzinger (FDP), it is the lead committee for all items connected with tax pol- icy, the money and capital markets, customs, and other financial policy issues. With the exception of budgetary policy, the Finance Commit- tee therefore oversees all developments within the jurisdiction of the Federal Ministry of Finance. Bills, motions, reports, reso­ lutions and numerous items from the European Union pile up in the Committee members’ in-trays. Their work may sound dry, but all human life is there. Again and again, they discuss tax cuts that will reduce the burden on citizens and businesses, and the tax revenues that enable the state

The Finance Committee are made frequently inspire new draft legislation, which is ultimately scrutinised by the Finance Committee. The Com- to meet its obligations. Inter- mittee’s deliberations are usu- national taxation issues, such ally preceded by long public as the fight against base ero- debates. However, the serious sion and profit shifting, are business really starts when a receiving growing attention piece of draft legislation is from the Committee in the era issued as a printed paper and of an ever more global econ- delivered to the Finance Com- omy and the digital revo­ mittee. Bills hardly ever leave lution. At the same time, the the Committee unamended. renewal of the financial mar- Experts in financial policy ket architecture launched from all the parliamentary after the 2008 financial crisis groups weigh up the pros and remains on the Committee’s cons of each initiative in their agenda. The continuing devel- party working groups and opment of the European bank- then in the full Committee. ing union is a key element Finally, the Committee in this. Likewise, rules to informs the plenary about the improve investor and con- results of its deliberations in sumer protection in financial the form of a report and rec- services and to promote the ommendation for a decision further integration of capital on the bill, which serves as markets are being initiated at the basis for the vote in the EU level. The suggestions that plenary.

14 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CDU/CSU 9 ■ ■ ■ ■ ■ ■ ■ ■ ■ SPD 5 ■ ■ ■ ■ ■ AfD 5 ■ ■ ■ ■ ■ FDP 4 ■ ■ ■ ■ Party 4 ■ ■ ■ ■ /The Greens

Number of members: 41 Chairwoman: Bettina Stark-Watzinger, FDP Deputy Chairman: , AfD

7 The tax revenue forecasts issued by the Federal Govern- ment appear regularly on the Finance Committee’s sched- ule as well. Twice a year, the The Finance Committee’s Federal Ministry of Finance’s agenda also features many Working Party on Tax Reve- items on which it is asked for nue Forecasting publishes its opinion. When the special- important data about pro- ised committees that deal jected future tax revenues. with environmental, transport This is part of the parliamen- or agricultural policy are tary oversight of financial ­discussing biofuels, aviation ­policy, which also includes fuel or agricultural diesel, the briefings the Committee for instance, the Bundestag’s receives from the Federal financial policy specialists are Ministry of Finance about also called upon to consider the meetings of the ECOFIN the tax aspects of the items in Council, where the EU Mem- question. In these cases, the ber States’ economic affairs Finance Committee delivers and finance ministers take its recommendations to the far-reaching decisions on lead committee for each item. behalf of all EU countries.

8 The Committee’s members study documentation inten- Banking regulation, measures sively before deliberating on to prevent the transfer of an item. Above all, however, profits abroad, action against the members of the Commit- money laundering, and tee are given opportunities to Cameroon – the Committee’s make up their own minds at work in practice consultations and public hear- ings with experts. The experts The creation of a European invited by the Committee are banking union may have little nominated by the parliamen- in common with a bill inten­ tary groups, and tend to be ded to regulate the exchange academics, representatives of information in tax matters of interest groups, and trade with Cameroon. Yet both sub- unionists. They comment on jects have appeared on the the subjects of the hearings Finance Committee’s agenda. and help to ensure that the They show the diversity of the consequences a piece of legis- topics considered by the Com- lation will have for all groups mittee. At one meeting, it may in society are made quite find itself looking at the infor- explicit. The Finance Com- mation which financial ser- mittee held 47 public hear- vice providers are required to ings and consultations in the disclose to their customers or last electoral term alone, and action to tackle money laun- is continuing to hold public dering, while at the next it hearings on draft legislation discusses the VAT system or in the current electoral term. the design of inheritance tax.

9 The OECD’s Action Plan on Base Erosion and Profit Shift- ing is giving rise, in several steps, to European directives and regulations, and the Finance Committee engages in intensive discussions on their implementation in German law. The Finance Committee delib- With regard to the regulation erates on important and often of the financial markets, the lengthy regulations and Committee discusses items motions on tax law. These intended to enhance trans­ include the “Annual Tax Act” parency and consumer pro­ bringing together the tax tection, such as the Act to adjustments necessary for Ensure Stable and Fair Benefit each new tax year, or the vari- Payments for Life Insurance ous information exchange Policyholders, the Act Imple- agreements and double taxa- menting the EU Deposit Guar- tion agreements with other antee Schemes Directive or countries. Bills and motions the Retail Investor Protection to amend the VAT Act, the Act. The Committee also deals Corporation Tax Act or the with various bills and motions Income Tax Act feature on the containing important meas- Committee’s agenda, as do ures to stabilise the financial more specific tax regulations sector and to prevent future such as the taxation of sports financial crises, or to at least betting or changes to the ensure that such crises do not Insurance Tax Act or the weigh on the public purse. Motor Vehicle Tax Act. Prominent examples of such

10 The items on financial market regulation, but also motions and bills relating to tax law and other areas such as action against money laundering, measures include the Act show that in the field of finan- Adapting National Bank Reso- cial policy there is a growing lution Law to the Single Reso- interdependence between lution Mechanism and the national legislation in the European Bank Levy Provi- ­German Bundestag and EU sions (Resolution Mechanism legislation. Many of the bills Act) or the Act Implementing considered by the Finance the EU Directive Establishing Committee deal with the a Framework for the Recovery implementation of EU direc- and Resolution of Credit Insti- tives or regulations. The tutions and Investment Firms ­members of the Finance Com­ (BRRD Implementation Act). mittee therefore hold very In the current electoral term, detailed discussions on indi- the Finance Committee is vidual EU legislative projects once again deliberating on concerning financial policy, motions and bills which aim in order to scrutinise the main to put in place additional lines of European policy in ­elements of a resilient and this area and to help shape it, consumer-friendly financial where appropriate, by provid- system. ing input of their own.

11 Bettina Albrecht Glaser, AfD Stark-Watzinger, FDP Deputy Chairman Chairwoman Lawyer, former city Economist, treasurer, b. 12 May 1968 b. 8 Jan. 1942 in am Main; in Worms; married; two children. married; four children. Bundestag Member Bundestag Member since 2017 since 2017

Committee members The 41 members of the Finance Committee

12 , Dr , CDU/CSU CDU/CSU , CDU/CSU Tax adviser, Economist, Financial admini­strator, b. 18 Oct. 1971 b. 5 Sep. 1967 b. 2 Nov. 1965 in ; in Lindlar; married; in Winsen (Luhe); two children. three children. married; three children. Bundestag Member Bundestag Member Bundestag Member since 2017 since 2017 since 2013

Fritz Güntzler, CDU/CSU , , Auditor, tax adviser, CDU/CSU CDU/CSU b. 6 May 1966 Lawyer, Lawyer, in Cuxhaven; b. 14 Oct. 1970 b. 18 Dec. 1977 married; in Karlsruhe; in Hattingen; two children. married; one child. unmarried. Bundestag Member Bundestag Member Bundestag Member since 2013 since 2002 since 2013

13 Dr h.c. , CDU/CSU Dr Thomas CDU/CSU spokesman de Maizière, on the Committee Sepp Müller, CDU/CSU Entrepreneur, CDU/CSU Lawyer, former Federal former mayor, Bank business Minister of the Interior, b. 3 May 1949 ­administrator, b. 21 Jan. 1954 in Gemünden am Main; b. 22 Jan. 1989 in in Bonn; married; married; Lutherstadt Wittenberg; three children. three children. unmarried; one child. Bundestag Member Bundestag Member Bundestag Member since 2009 since 1994 since 2017

Christian Freiherr von Stetten, , , CDU/CSU CDU/CSU CDU/CSU Business administrator, Lawyer, engineer, Academic secondary entrepreneur, b. 30 Aug. 1964 school teacher, b. 24 July 1970 in ; b. 18 June 1987 in ; unmarried. in Bad Dürkheim. married; one child. Bundestag Member Bundestag Member Bundestag Member since 2013 since 2013 since 2002

14 , CDU/CSU Dr Hermann-Josef CDU/CSU spokes­ Ingrid Arndt-Brauer, Tebroke, woman on financial SPD CDU/CSU policy Business administrator, Business administrator, Tax adviser, sociologist, b. 19 Jan. 1964 b. 28 Aug. 1964 b. 20 Mar. 1961 in Rhede, Westphalia; in Düsseldorf; in Marburg; married; four children. divorced; one child. married; four children. Bundestag Member Bundestag Member Bundestag Member since 2017 since 2002 since 1999

Lothar Binding, SPD SPD spokesman on the Committee, SPD spokesman on financial policy Electrical power , Dr , engineer, SPD SPD mathematician, Executive, Psychologist, b. 1 Apr. 1950 b. 1 June 1956 b. 11 Feb. 1984 in Sandershausen; in Sendenhorst; in ; married; two children. married; two children. unmarried. Bundestag Member Bundestag Member Bundestag Member since 1998 since 2013 since 2017

15 , , , SPD SPD SPD Lawyer, Economist, Political scientist, b. 25 June 1969 b. 8 Oct. 1975 in ; b. 31 Jan. 1983 in . two children. in Cologne. Bundestag Member Bundestag Member Bundestag Member since 2013 since 2013 since 2015

Franziska Gminder, AfD , Business administrator, SPD b. 4 Feb. 1945 Academic secondary Dr Jens Zimmermann, in Gablonz an der school teacher, SPD Neiße b. 3 July 1977 Business administrator, (now Jablonec nad in Munich; b. 9 Sep. 1981 Nisou); married; two children. in Groß-Umstadt; married; three children. Bundestag Member Bundestag Member Bundestag Member since 2017 since 2013 since 2017

16 , AfD AfD spokesman on the , Committee Dr , AfD Business administrator, AfD Bank clerk, business bank clerk, Economist, administrator, b. 12 Dec. 1965 b. 13 Jan. 1948 b. 19 Aug. 1972 in Hamburg; in Hamburg; in ; unmarried. married; three children. divorced. Bundestag Member Bundestag Member Bundestag Member since 2017 since 2017 since 2017

Markus Herbrand, , Frank Schäffler, FDP FDP FDP Financial administrator, Lawyer, specialist in Business administrator, tax adviser, tax law, b. 22 Dec. 1968 b. 24 Feb. 1971 b. 5 May 1972 in Schwäbisch Gmünd; in Schleiden; in Nuremberg; married; two children. married. married. Bundestag Member Bundestag Member Bundestag Member from 2005 to 2013 and since 2017 since 2017 since 2017

17 , Dr , The Left Party FDP The Left Party FDP spokesman spokesman on the on the Committee, Committee, FDP spokesman Jörg Cezanne, The Left Party on financial policy The Left Party spokesman on Lawyer, Executive, financial policy b. 18 Oct. 1979 sociologist, Economist, in Hamburg; b. 8 June 1958 b. 7 Mar. 1980 married; two children. in Frankfurt am Main; in Groß-Gerau; Bundestag Member divorced; one child. unmarried; one child. from 2005 to 2013 Bundestag Member Bundestag Member and since 2017 since 2017 since 2017

Michael Leutert, Dr , The Left Party , Alliance 90/The Greens Sociologist, The Left Party Business adviser, b. 8 Aug. 1974 Journalist, b. 15 Oct. 1983 in Schlema; b. 29 Oct. 1954 in ; married; three children. in Elten, Emmerich. unmarried. Bundestag Member Bundestag Member Bundestag Member since 2005 since 2013 since 2017

18 , Alliance 90/The Greens Alliance 90/The Greens spokeswoman on the Committee, Dr Wolfgang Alliance 90/The Greens Stefan Schmidt, Strengmann-Kuhn, spokeswoman Alliance 90/The Greens Alliance 90/The Greens on financial policy Teacher, Economist, Economist, research assistant, b. 20 May 1964 b. 19 Sep. 1968 b. 19 May 1981 in Dinslaken; in Rheine, Westphalia; in Freystadt; married; two children. unmarried; one child. married; one child. Bundestag Member Bundestag Member Bundestag Member from 2008 to 2013 since 2009 since 2017 and since 2014

19 Information online

The Finance Committee www.bundestag.de/en/committees/a07

The Federal Ministry of Finance www.bundesfinanzministerium.de/Web/EN

The www.bundesfinanzhof.de

The Bundesrechnungshof (Supreme Audit Institution) www.bundesrechnungshof.de/en

The Bundesbank www.bundesbank.de/en

The Federal Financial Supervisory Authority www.bafin.de/EN

The Federal Central Tax Office www.bzst.de/EN

20 Contact details for the Committee Secretariat

Deutscher Bundestag Finanzausschuss Platz der Republik 1 11011 Berlin Tel.: + 49 30 227-32468 Fax: + 49 30 227-36844 Email: [email protected]

21 Published by: German Bundestag, Public Relations Division Coordination: Robert Schönbrodt Texts: Georgia Rauer; revised by: Committees Directorate (p. 4 – 5), Secretariat of the Finance Committee (p. 6 – 21) Edited by: Katharina Frier-Obad Translated by: Language Service of the German Bundestag, in cooperation with Emma Hardie Design: Marc Mendelson Bundestag eagle: Created by Professor Ludwig Gies, revised in 2008 by büro uebele Photos: p. 2 Deutscher Bundestag (DBT) / ​Linus Lintner Fotografie; p. 8–9, 10, 11 DBT / ​Julia Nowak; p. 23 DBT / ​studio kohlmeier Portrait photos: p. 3, 12 Bettina Stark-Watzinger / ​Eva Zocher (Bettina Stark-​ Watzinger); p. 12 Albrecht Glaser / ​Fotostudio Orendt (Albrecht Glaser); p. 13 Michael Kraus (Sebastian Brehm); DBT / ​Thomas Köhler / ​photothek (Carsten Brodesser); Laurence Chaperon (Uwe Feiler); Fritz Güntzler / ​Mirko Phla (Fritz Güntzler); DBT / ​Julia Nowak (Olav Gutting); Matthias Hauer / ​ Jan Kopetzky (Matthias Hauer); p. 14 Thomas de Maizière / ​Jan Kopetzky (Thomas de Maizière); Hans Michelbach / ​Tobias Koch (Hans Michelbach); DBT / ​Inga Haar (Sepp Müller); DBT / ​Inga Haar (Alexander Radwan); Tobias Koch (Johannes Steiniger); CDU Bundesgeschäftsstelle (Christian Freiherr von Stetten); p. 15 DBT / ​Julia Nowak (Hermann-Josef Tebroke); DBT / ​Julia Nowak (Antje Tillmann); DBT / ​Thomas Köhler / ​photothek (Ingrid Arndt- Brauer); DBT /Stella von Saldern (); DBT / ​Thomas Trutschel / ​ photothek (Bernhard Daldrup); DBT / ​Thomas Trutschel / ​photothek (Wiebke Esdar) p. 16 SPD Bundestagsfraktion / ​Susie Knoll (Metin Hakverdi); DBT / ​ Thomas Trutschel / ​photothek (Cansel Kiziltepe); SPD Bundestagsfraktion / ​ Susie Knoll (Sarah Ryglewski); SPD Bundestagsfraktion / ​Benno Kraehahn (Michael Schrodi); Marlene Bleicher (Jens Zimmermann); Franziska Gmin- der / ​Fotostudio Akzente (); p. 17 Kay Gottschalk / ​Sieg- fried Reffgen (Kay Gott­schalk); DBT / ​Julia Nowak (Bruno Hollnagel); DBT / ​ Julia Nowak (Stefan Keuter); DBT / ​Thomas Trutschel / ​photothek (); Frank Boxler (Katja Hessel); Frank Schäffler / ​Dilek Paul (Frank Schäffler); p. 18 Ulrich Schepp (Florian Toncar); DBT / ​Inga Haar (Jörg Cezanne); Die Linke Hamburg / ​Karin Desmarowitz (Fabio De Masi); DBT / ​Inga Haar (); Die Linke im Bundestag (Hubertus Zdebel); DBT / ​Julia Nowak (Danyal Bayaz); p. 19 Bündnis 90/Die Grünen Bundestagsfraktion / ​ Stefan Kaminski (Lisa Paus); DBT / ​­Thomas Köhler / ​photothek (Stefan Schmidt); René Spalek Photography (Wolfgang Strengmann-Kuhn) Graphic: p. 7 Marc Mendelson Printed by: Druckhaus Waiblingen Remstal-Bote GmbH As at: January 2019 © Deutscher Bundestag, Berlin All rights reserved. This publication has been produced as part of the German Bundestag’s ­public relations activities. It is provided free of charge and is not intended for sale. It may not be used for election campaign purposes or utilised by parties or parliamentary groups in their own public relations activities. 23 The German Bundestag takes decisions on what are at times highly complex and controversial bills and parliamentary initiatives relating to the entire spectrum of policy fields. The committees play a central role in parliamentary deliberations. They are the forum where the Members thrash out compromises and draw on expert advice before submitting their reports and recommen­dations for decisions to be voted on by the Bundestag as a whole. www.bundestag.de/en/committees