BERLIN - German Finance Minister Olaf Scholz was aware of potential market manipulation at Wirecard almost a year and a half before the company collapsed, putting pressure on a key figure in Angela Merkel's government.
Presented to the heads of the parliamentary finance committee on Thursday evening , the report creates a new opening for critics who accuse German authorities of being too lax by failing to pursue fraud allegations of a company that aspired to be a leading light in Europe's tech industry. His deputy, Joerg Kukies, confirmed on Wednesday that he met the digital payments company's then-Chief Executive Officer Markus Braun twice at the end of last year, including once on the manager's birthday.
Despite the mounting pressure, Merkel would be hard pressed to take action against her vice chancellor without bringing down the coalition, an unlikely scenario in the midst of a global pandemic and during Germany's six-month presidency of the European Union. "Politically it's highly problematic that the finance minister got involved with the case at such an early stage," Danyal Bayaz, a lawmaker with the Green party, said in a phone interview on Friday.
Still, voter backing of the SPD remains mired at historic lows, and the party has begun to maneuver in support of Scholz's bid to run for the chancellorship.REFORM PUSH The Finance Ministry waved off suggestions that Scholz didn't act appropriately.
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