Luxembourg, 20/10/2009 (Agence Europe) - On Tuesday 20 October 2009, Austria and Luxembourg made it clear that they will not agree to the signing at this point of an anti-fraud deal between the EU and Liechtenstein because they want greater visibility about the direction the negotiations will take over various fiscal governance issues. Luxembourg's finance minister, Luc Frieden, said it was too early to sign an anti-fraud deal with Liechtenstein. Agreeing with the idea of a package of legislation on good fiscal governance, the Austrian finance minister, Josef Pröll, said that some issues remained to be settled, like how foundations and trusts would be dealt with. These reservations cover the timing rather than the details because the two countries want a package of legislation, explained EU Taxation Commissioner László Kovács. Arguing that the EU- Liechtenstein anti-fraud deal should not be taken hostage, he said the Commission would formally propose the draft agreement at an upcoming ECOFIN Council meeting, probably in December 2009. Technically, the Commission could decide on its own to initial an agreement, but such a deal would be vetoed during the ratification process by the Member States.
Austria and Luxembourg argue that a single package of legislation on good fiscal governance should comprise the EU/Liechtenstein deal and mandates for negotiating similar deals with other countries (Andorra, Monaco, San Marino and Switzerland), along with the review of Savings Tax Directive 2003/48/EC and two areas of draft legislation currently on the drawing board to improve administrative cooperation on tax collection. (M.B. trans fl)