By Christian Grimm

ASCHAFFENBURG, Germany–Chancellor Angela Merkel on Thursday said the financial sector owes it to the rest of society
to pay a financial transactions tax–a planned levy on trades of securities and derivatives in 11 states in the European
Union.

The financial sector behaved egotistically and thought only of itself before the financial crisis hit and now needs to
play its part, Ms. Merkel told a campaign event for her Bavarian sister party the Christian Social Union in
Aschaffenburg.

Other than this tax, Ms. Merkel continues to rule out tax increases in the next legislative period if she is re-
elected. Germany goes to the polls on Sept. 22, with Bavaria holding regional elections a week earlier.

She told voters her party will “cut the mountain of debt in the coming four years,” and said Europe as a whole also
needs to keep on a deficit-reduction path.

Addressing the debate over alleged spying on European institutions by the U.S. National Security Agency, Ms. Merkel
reiterated her wish to clear up the matter with Washington and push for international standards on data protection.

“As Chancellor, I have a double responsibility–for security against attacks and for the security of personal data,”
Ms. Merkel told the gathering.

Write to Christian Grimm at christian.grimm@dowjones.com

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