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Luxembourg to ease the secrecy surrounding its banks | Luxembourg to ease the secrecy surrounding its banks |
(about 1 hour later) | |
Luxembourg has said it will ease the secrecy surrounding its banks. | Luxembourg has said it will ease the secrecy surrounding its banks. |
It said it would implement rules on the automatic exchange of bank account information with its European Union partners from 2015. | It said it would implement rules on the automatic exchange of bank account information with its European Union partners from 2015. |
Prime Minister Jean-Claude Juncker said Luxembourg would introduce the reforms in two years, in line with the EU Savings Directive. | |
The rules of the Directive are aimed at creating greater transparency and minimising tax evasion. | |
Calls for a crackdown on bank secrecy have been increasing, as governments seek to raise more taxes to support their finances. | |
"We can introduce [the rules] without any danger from January 2015," Mr Juncker said. | |
Austria next? | |
Luxembourg is a country of only 500,000 people, but its banks and other financial institutions have assets worth more than 20 times the country's economic output. | Luxembourg is a country of only 500,000 people, but its banks and other financial institutions have assets worth more than 20 times the country's economic output. |
Luxembourg's foreign minister, Luc Frieden, said at the weekend that he wanted to "strengthen co-operation with foreign tax authorities". | Luxembourg's foreign minister, Luc Frieden, said at the weekend that he wanted to "strengthen co-operation with foreign tax authorities". |
Last week, Germany signed a tax evasion treaty with Switzerland - another European banking centre known for its secrecy. | Last week, Germany signed a tax evasion treaty with Switzerland - another European banking centre known for its secrecy. |
The treaty is designed to give the German tax authorities the ability to claw back taxes from their citizens who may be hiding money in Swiss banks. | The treaty is designed to give the German tax authorities the ability to claw back taxes from their citizens who may be hiding money in Swiss banks. |
Luxembourg's announcement leaves Austria as the only European Union country not signed up to the EU Savings Directive. | |
Austria's finance minister, Maria Fekter, said recently that she would "fight like a lion" to defend the country's banking secrecy regime. | |
However, the country's Chancellor, Werner Faymann, indicated on Tuesday that change may have to come. |