So-called Cum-Ex and Cum-Cum tax schemes are still costing many European countries billions in lost revenue. In Germany, questions are mounting why the state is doing so little to stop them. These complex financial mechanisms have exploited legal loopholes, allowing traders to artificially inflate their tax liabilities and avoid paying their fair share. The cumulative effect has led to a significant drain on public resources, with some estimates suggesting losses in the tens of billions of euros.
Recent reports indicate that Germany’s financial authorities have been slow to implement effective measures to combat the schemes, despite growing pressure from lawmakers and international partners. Critics argue that the lack of enforcement is due to bureaucratic inertia and a reluctance to disrupt established financial markets. Meanwhile, the German government maintains that it is actively working on solutions, though progress remains unclear. The issue has sparked a broader debate about the need for stronger regulatory oversight and international cooperation to tackle tax evasion in the digital age.
Economists and legal experts warn that without decisive action, the damage could continue to escalate. The ongoing scandal highlights the challenges of modern tax enforcement, as sophisticated financial products continue to outpace regulatory frameworks. As European countries grapple with budget deficits and rising public debt, the failure to address these schemes could have far-reaching consequences for economic stability and fiscal policy across the continent.