Tax Havens Under Scrutiny

The renewed effort to combat tax havens, led by France and Germany, is creating tensions between Bern and Berlin.

Following the meeting of the 17 OECD nations held on October 21, 2008, by French Budget Minister Eric Woerth and German Finance Minister Peer Steinbrück regarding “responses to the non-compliance with legislation” by tax havens, tensions are rising between Bern and Berlin.

Germany has called on the OECD to place Switzerland on its “blacklist,” arguing that its employment conditions “incentivize” Germans to move to’escape tax-related”.
A direct response from the Swiss government, which stated on October 25, “very surprised, and above all, very disappointed by the tone. This is not how one speaks to a partner.”

Absent from the meeting, the Luxembourg Prime Minister stated he was “entirely open to discussing the merits of banking secrecy,” without, however, being willing to “voluntarily sit in the dock.”