It is becoming increasingly difficult for the German chancellor to extricate himself from the corruption scandal.

Chancellor Olaf Scholz is appearing for the third time before the Hamburg investigating committee for questioning regarding the CumEx scandal. The so-called CumEx case has been in the international press for years, as several countries are involved. The case is essentially an investigation by authorities into a massive tax fraud scheme involving an entire network of banks, stockbrokers, lawyers and financial advisers.

The network defrauded billions from European treasuries by an alleged abuse of the dividend tax, as well as speculation. The countries losing the most were stripped of more than 62 billion dollars. Germany leads the list of these countries, with more than thirty-five billion dollars lost or stolen, current data suggest.

Olaf Scholz may also be implicated, although from time to time he manages to temporarily disentangle himself from the investigation. Mr Scholz is suspected of helping Warburg Bank evade taxes while he served as the mayor of Hamburg. When the investigation into the bank began, it was headed by current mayor Peter Tschentscher. Despite the investigation and the work of the prosecutor’s office, Hamburg paid 47 million euros in tax refunds to Warburg bank, even though the institution was not entitled to that sum. Olaf Scholz is suspected to have known about the fraud.

Mr Scholz met the bank’s owners several times, but during the investigation he claimed that he could not remember exactly what they had discussed. However, the chancellor’s memory was refreshed by a witness’s diary entry. One of the owners, Christian Olearius, wrote that Mr Scholz had assured everyone that if it were up to him, Warburg Bank would be able to keep the money. The relationship between the two parties is also underscored by the fact that the bank has given a lot of money to Mr Scholz’s party, the Social Democrats – so the friendship and supposed assistance seems to have paid off – quite literally.

A book has also been published about Olaf Scholz’s corruption scandal. Written by Oliver Schrom and Oliver Hollenstein, the volume titled „The Scholz Files: the chancellor, the money and the power” covers the Cum-Ex scandal and the role of Olaf Scholz and others in it. The book seeks to answer two fundamental questions: