Luxembourg PM to demand action on British trusts, havens
Photo Jean-Claude Juncker
(GENEVA) - Luxembourg Prime Minister Jean-Claude Juncker said in remarks published Wednesday he would demand action by Britain to clean up its trusts and banking havens during an EU summit this week.
Juncker also sharply criticised pressure on Luxembourg and Switzerland's banking secrecy in the interview with the Swiss newspaper Le Temps, saying the French and German stance was tainted by arrogance and "mediocre" populism.
British, French and German ministers have spearheaded a campaign in recent months to force financial havens such as Switzerland and Luxembourg to ease banking secrecy and counter tax evasion.
But Juncker counter-attacked a week after Luxembourg made concessions by agreeing to sign up to OECD rules on exchanging tax information.
"The United Kingdom cannot continue to protect Europe's big fortunes from the tax man in their countries of origin," he told Le Temps.
"I aim, during the European summit, to demand action. It is essential that the British dependent territories in turn accept exchange of information," he added.
The financial services industry in Guernsey, Jersey and the Isle of Man has relied on banking secrecy.
Juncker also suggested that British mainland legislation allowing secretive trusts could no longer escape from EU rules on savings taxation, which are currently in the process of being revised by the bloc's 27 member states.
Leaders of EU nations are due to meet on Thursday and Friday in Brussels to form a common European front for a summit on April 2 in London of the Group of 20 leading economic powers.
Luxembourg's prime minister took issue with "one-upmanship" on banking secrecy in France and Germany saying it was marked not only by "exaggeration, but a disturbing arrogance and condescension."
"Such an offhand manner from political officials, in Paris as well as in Berlin, is inspired by a mediocre form of populism."
"I hope that those who search a quarrel with us react just as vehemently to British trusts or the tax legislation of some US states," he added, singling out concessions for companies in the US state of Delaware.
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