Mr Couchepin reiterated that Switzerland could consider imposing a withholding tax on non-resident savings but ruled out once again exchanging information with EU tax authorities. Switzerland is famous (and, occasionally, chastised) for its strict banking secrecy laws, which would be undermined by any information exchange agreement, say the Swiss.

Mr Couchepin said: 'We are ready to discuss with the European Union when it itself has decided a certain number of issues, for example, defining the capital which is to be taxed and how to apply (the measure) in EU territories. We could consider a form of advance tax payments - a withholding tax. Exchange of information does not appear to us to be the most appropriate instrument.'

The EU of course disagrees with Couchepin, since it was unable to agree on a withholding tax during the Portuguese presidency and is now discussing phasing in exchange of information as a way of combatting tax evasion over the next few years.

Another principle, expected to be agreed at a meeting on November 27, is that any revenues collected from non-residents' bank accounts in one country be redistributed to their home country tax authorities. Couchepin declined to say whether Switzerland would be open to applying a similar system of revenue sharing but said 'you never close the door before a negotiation.'