EU Ministers Urge Switzerland To Accept Savings Directive

by Ulrika Lomas, Tax-News.com, Brussels

11 February 2004

Switzerland’s reticence in signing up to the European Savings Tax Directive was one of the main topics occupying EU finance ministers yesterday as the Swiss continue to hold out for concessions relating to its adoption of the Schengen Agreement.

"The strong and unanimous message of the finance ministers today is to conclude the negotiations with Switzerland as quickly as possible," commented Irish Finance Minister Charlie McCreevy, whose country currently holds the EU rotating presidency.

However, whilst the Swiss have agreed in principle to adopt the savings directive, officials are sceptical that Switzerland’s parliament will approve the package unless an acceptable compromise is reached on the fiscal offenses chapter of the Schengen agreement, which allows for the free movement of peoples within the Union.

Switzerland’s dogged resistance has aroused anger amongst many powerful European figures, including French Finance Frances Mer who remarked yesterday: "There is no question of linking subjects which have nothing to do with each other."

Mer is urging the EU tax commissioner Frits Bolkestein to take a hard-line stance on the issue, and to "put the screws on Switzerland in the coming weeks."

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