Brussels, 12/07/2011 (Agence Europe) - The EU27 economic and finance ministers met in Brussels on 12 July, where they unanimously decided to continue working on amendments to the draft directive revising the savings tax directive (2003/48/EEC) and the details of the negotiating mandate to be given to the European Commission for tax agreements with five non-EU countries (Switzerland, Liechtenstein, Monaco, Andorra and San Marino) to ensure the agreements fell in line with the EU's revised savings tax directive, particularly in terms of exchange of information about the taxation of savings deposited by non-residents.
Although no decisions were expected at this stage on either issue because of Italy's objections on the one hand, along with opposition from Luxembourg and Austria (for different reason from Italy, see EUROPE 10415), the Polish Presidency pointed out that the decision to continue holding talks on both matters was reached unanimously with the aim of not postponing the launch of talks with the five countries any longer than necessary.
The negotiations are not expected to begin this year, explained Luxembourg's Economics Minister Luc Frieden, who seemed to suggest that Luxembourg was still unhappy about progressing any further on the matter until guarantees had been obtained about the transition period during which Luxembourg would be allowed to continue with its confidential bank accounts by means of deducting tax at source.
Italian Finance Minister Tremonti did not make any statements after the meeting, but the unanimous decision to continue working on the two issues might suggest that the Italian government is changing its mind and is no longer so adamant that talks cannot begin with the five countries until problems with the current revision of the savings tax directive have been ironed out. Rome says that the revised directive does not do enough to deal with loopholes and the lack of teeth of the original version. The Polish Presidency said in this connection that Italy had a very strong view about measures to be introduced in the revised directive and these views would be taken into account when these areas came up in the negotiations with the five countries. Work will therefore continue at the European Commission to produce a report on how the current directive is being implemented, which should enable changes to be made to the draft revision of the directive to Italy's satisfaction. (F.G./transl.fl)