Saudi Press

Saudi Arabia and the world
Thursday, Apr 09, 2026

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

Saudi Press
0:00
0:00
Close
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
Jordan and Saudi Arabia Declare Absolute Solidarity in Response to Iranian Threats
Saudi Arabia Raises Oil Prices to Record Premium Amid Strong Market Demand
California’s Salton Sea Emerges as Strategic Lithium Hub for Clean Energy Future
Iranian Drone Strike on US Embassy in Saudi Arabia Reportedly Targeted Intelligence Facility
Saudi Deputy Foreign Minister Meets French Embassy Official to Strengthen Bilateral Engagement
Saudi Arabia Calls on United States to Seize Strategic Opportunity to Reshape Middle East
Dating Apps Surge in Saudi Arabia as Social Norms Rapidly Evolve Among Youth
Saudi Arabia Detains Over Fourteen Thousand Illegal Residents in Week-Long Enforcement Drive
Saudi Foreign Minister Engages in Diplomatic Talks with Pakistan, Kuwait and Latvia on Regional Developments
Saudi Arabia Intercepts Cruise Missile as Regional Tensions Intensify
Saudi Stock Market Edges Higher as Tadawul Index Records Modest Gain
Underlying Rivalry Between Saudi Arabia and UAE Persists Despite Temporary Calm
Saudi Arabia’s Non-Oil Sector Contracts in March as Regional Tensions Weigh on Business Activity
Saudi Arabia Unveils Ambition to Establish Prestigious Global Prize Rivaling the Nobel
Saudi Crown Prince to Engage Wall Street in Push for Investment and Economic Expansion
Iran Accuses Saudi Arabia and UAE After Downing of Chinese-Made Drone
Saudi Arabia Condemns Attack on Hospital in Sudan, Calls for Protection of Civilians
Coordinated Drone Strike Targets CIA Facility Within US Embassy in Saudi Arabia
Italy’s Meloni Prioritises Energy Security and Strait of Hormuz Stability During Gulf Tour
Uncertainty Emerges Over Timeline and Direction of Saudi Arabia’s Ambitious Ski Resort Project
UAE and Saudi Arabia Escalate Strategy with Drone Operations Targeting Iran
Trump Delivers Characteristic Remarks on Saudi Crown Prince Amid Intensifying Iran Conflict
×