Luc Frieden told reporters in Brussels that “there is still some need for clarification” before the EU’s savings tax directive could be updated and finalised, according to Bloomberg.
International Adviser reported only last month that Frieden had said Luxembourg would consider making its banking sector more transparent and that he wanted to “strengthen co-operation with foreign tax authorities”.
But Luxembourg looks set to be the last country blocking reform for France, Germany and the UK when EU leaders meet at next week’s summit.
Although Luxembourg has relaxed its objections to automatic sharing of tax information between governments, it has also wanted to see a deal done with Switzerland first.
Meanwhile, Austria looks set to accept transparency on bank deposits, with Werner Faymann, the chancellor stating in Austria’s daily newspaper Kronen Zeitung that he would back the proposals, as reported in the Financial Times.
“If agreement on automatic data exchange is not reached at Ecofin on May 14, it will be achieved a week later at the meeting of heads of government,” Faymann said.
To read why current initiatives to tackle tax abuse within the European Union have been branded “dangerous” and “excessively burdensome” by a body representing around 200,000 financial intermediaries, click here.
To understand more about UK chancellor George Osborne’s recent claims to have a made a “significant step forward in tackling illicit finance”, click here.
