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Europe Daily Bulletin No. 8380
Contents Publication in full By article 10 / 36
GENERAL NEWS / (eu) eu/taxation

No progress on savings tax issue on eve of next Tuesday's Ecofin Council

Brussels, 16/01/2003 (Agence Europe) - The first Ecofin Council under Greek Presidency, scheduled to take place next Tuesday in Brussels, will once again seek to reach an agreement on the savings tax issue (see EUROPE of December 13, p.8). After the meeting between the Fifteen, however, on Wednesday, it seems that the chances of ministers concluding are somewhat slim, despite optimism expressed last week by European Commissioner Frits Bolkestein (see EUROPE of 8 January, p.10). Measures proposed by the Commission, which, in order to combat tax evasion, mainly provide for exchange of information on taxable income from crossborder savings of EU residents, requires unanimity of Member States. At this stage, Luxembourg nationals and Austrians, who are keen to keep their banking secret system, would continue to put the brake full on. According to sources familiar with the issue, the outcome of Ecofin discussions does not seem very clear and, after Wednesday's meeting, no-one can assume that things will be easy.

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