Thursday

20th Sep 2018

Austria, Luxembourg to play ball in tax clampdown

  • Some €1 trillion are lost yearly to tax evasion (Photo: bundesbank.de)

Germany expects Austria and Luxembourg to take part in an EU-wide effort to clamp down on tax evasion, even though the two countries last week blocked a key EU proposal on the topic.

An EU summit devoted to tax evasion on Wednesday (22 May) is not meant to "pressure" Austria and Luxembourg, but the German government expects the two countries to eventually back an initiative they blocked last week, a senior German official said Tuesday in Berlin.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

The official underlined the significance of the Austrian and Luxembourg finance ministers last week agreeing to give a mandate to the European Commission for savings tax deals with Switzerland, Andorra, Liechtenstein, Monaco and San Marino.

"If they agreed to automatic data exchanges between the EU and these five countries, it also implies they will participate in the automatic data exchange within the EU. Or else it would make no sense. So we see a pretty clear link here," the source said.

Meanwhile, in Brussels, EU officials also expressed their hope that the Wednesday summit will bring about "some movement" from the Austrian and Luxembourg delegations.

The mandate agreed last week was a "significant breakthrough", but EU states still need to "step up efforts in agreeing the EU savings tax directive," Irish foreign minister Eamon Gilmore said Tuesday in a press conference after chairing a preparatory meeting ahead of the summit.

EU administrative affairs commissioner Maros Sefcovic also said it was "very good" that ministers agreed on the mandate, "but the real test is whether we can deliver quick progress on the savings directive" blocked by Austria and Luxembourg.

With general elections due end of September, the two largest Austrian parties that form the ruling coalition - the Social-Democrats of Prime Minister Werner Faymann and the Conservatives of finance minister Maria Fekter - are at odds on whether to support the scheme or not.

Luxembourg, meanwhile, has said it will participate in the automatic exchange from 2015 on, although last week it backed the Austrian stance.

On Tuesday, Luxembourg repeated its position to the US, promising it will share information about bank accounts held by US citizens and residents from 2015 on.

"Luxembourg wishes to see the same conditions apply to all competing financial centres and to see the automatic exchange of information accepted as the international standard," a statement of the Luxembourg finance ministry said.

A large trove of offshore accounts leaked to several international newspapers has stepped up pressure on governments to clamp down on tax havens and go after unpaid taxes. Estimates put the lost tax revenues at €1 trillion yearly.

Analysis

Why is Austria so keen on bank secrecy?

Privacy concerns and the fear of losing big money from abroad are the main reasons why Austria is still holding out against an EU scheme to lift bank secrecy in Europe.

News in Brief

  1. Austria ex-chancellor hints at running for Juncker's job
  2. Greece to move asylum-seekers from overcrowded Lesbos camp
  3. Transatlantic soya trade soars due to trade wars
  4. EU tables strategy for connecting Europe and Asia
  5. Bulgaria backs Hungary in dispute with EU
  6. Trump urged Spain to build Sahara wall to stop migrants
  7. EU-Arab League summit proposed for February in Egypt
  8. Stop 'migration blame-game', Tusk tells EU leaders

Opinion

Aid, migration and the next EU budget

Th next EU budget is the most pivotal opportunity to advance a vision for Europe rooted in human rights and that builds a Union that works for all its members.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  2. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  3. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  4. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  5. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  6. IPHRCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  7. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  8. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  9. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  10. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  11. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  12. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want

Latest News

  1. EU divisions on menu at Salzburg dinner
  2. EU mulls action to prevent cattle suffering at Turkish border
  3. Safeguarding Schengen at Salzburg
  4. Denmark's image 'damaged' by bank scandal
  5. Real Brexit progress needed by October, Barnier says
  6. Poland to face EU top court on rule of law
  7. Austria's EU presidency: a bridge over troubled water?
  8. EU promotes 'Egypt model' to reduce migrant numbers

Join EUobserver

Support quality EU news

Join us