Brussels, 21/02/2008 (Agence Europe) - At the meeting of European Interior Ministers in Brussels on 28 February, the 27 EU member states will sign an agreement on the accession of the Principality of Liechtenstein to the Schengen area, the European Commission said on Wednesday 20 February. The exact date of the accession has not yet been decided, but it will be closely linked to Switzerland's joining the area scheduled for November, since the two countries share a border. Both will first have to undergo the renowned Schengen evaluation which checks the effectiveness of security measures introduced when border controls are removed. Evaluation inspections will be carried out on external border controls, visas, data, protection, police cooperation and how well the Schengen Information System (SIS) works in the two countries. The agreement with Liechtenstein, once signed by the 27 member states, will go before the European Parliament, before being ratified by the Schengen area countries.
Liechtenstein's accession to the area could face at least one major problem. Germany could make the Principality's accession to the border control-free area conditional on its making further efforts combating tax evasion. Improving judicial cooperation would, in the normal way of things, be required if Liechtenstein wanted to join the Schengen area. However, an exemption in the Schengen Association Agreement allows the Principality, like Switzerland, to retain banking secrecy in relation to direct taxation. Double criminality, defined by Article 51 of the Convention implementing the Schengen Agreement, means that mutual legal assistance not being granted if the facts leading to a request for rogatory letter from a requesting state are not punishable in the state addressed by a sentence of detention or a liberty restricting measure of a maximum of at least six months. Tax evasion and avoidance are not subject to such sentences or measures under Liechtenstein law. On Wednesday, during a visit of the head of the Liechtenstein government to Berlin, German Chancellor Angela Merkel demanded definite commitments on tax fraud, with German tax authorities investigating a scandal involving hundreds of Germans who had concealed their wealth in the Principality. Merkel did not put any ultimatum, which would slow the ratification of the agreement of Liechtenstein's accession to the Schengen area. She pointed out, however, that when it came to Berlin's ratifying the agreement, it would have to be expected that it “ask questions on progress in other negotiations” taking place. She was referring here to the rapid implementation of the third Community directive on money laundering, the conclusion of an agreement with the EU on combating fraud, cooperation with the OECD on mutual legal assistance in cases of tax crime, and the sharing of information on the movement of capital concerning European and US nationals. (B.C.)