Brussels, 09/04/2013 (Agence Europe) - After hints by Luxembourg's finance minister, Luc Frieden, that his government may relax its stance on the automatic exchange of bank account information of EU passport-holders with bank accounts in Luxembourg (see EUROPE 10822), the chancellor of Austria, Werner Faymann, made similar noises, stating that Austria would negotiate the end of banking secrecy on EU residents' bank accounts in Austria. After a cabinet meeting on Tuesday 9 April, Faymann said Austria was negotiating and discussing matters with Luxembourg, but said that secret bank accounts (something laid down in the Austrian constitution) would continue for Austrian passport holders.
Austria and Luxembourg are the only member states that still reject the idea of automatic exchange of information about bank accounts held by people living in other countries, but seem to be relenting under the pressure of their peers and the European Commission. On Monday, however, Austrian Finance Minister Maria Fekter said in an interview that she would fight like a lion to defend secret bank accounts. Her comments were toned down by the chancellor, who told Kurier on Tuesday that Austria would be taking part in the clamp-down on tax evasion in Europe and was prepared to negotiate improvements in the exchange of bank account information and would be entering full negotiations with the EU to see how to proceed. These contradictory statements were commented upon by the head of the S&D Group at the European Parliament, echoing Austrian Social Democrats, who want a partial lifting of secret bank accounts and expect Austria to turn the chancellor's words into action. They welcome the U-turn by Austrian Conservatives and urge the Conservative finance minister to stop protecting fraudsters.
German Finance Minister Wolfgang Schäuble who, along with the French finance minister, wants faster progress in the introduction of EU measures to tackle tax evasion and tax havens, wants this added to the agenda of the meeting of finance ministers in Dublin on 12 and 13 April. This issue, along with application of the United States' FATCA laws to banks around the world and the idea mooted by French minister Pierre Moscovici of a FATCA in Europe, will be discussed on Wednesday 10 April ahead of the G8 Summit in London on Thursday 10 April. (FG/transl.fl)