Luxembourg banks reluctant on Savings Directive 

On 20 April 2005, weeks before the controversial directive is due to come into force (1 July 2005), bankers in Luxembourg have threatened to pull out of the measure because of fears that it will not be uniformly implemented.

The directive ensures that details of income from savings accounts held by non-residents are passed to their home tax authorities. Banks have been uneasy about losing out to tax havens and EU ministers only agreed to the measure on the basis that the same rules would be followed by neighbouring non-EU states such as Switzerland and Monaco and tax havens like Guernsey and the Isle of Man (see EurActiv 13 April 2005).

Now Serge de Cillia, from the Luxembourg banking association ABBL, has been reported as saying that they need some technical clarification from the Commission before they can apply the directive.

Commission spokesperson Maria Assimakopoulou commented that the details of the directive had been agreed with the Luxembourg government at the EcoFin Council of 12 April and that she was not aware of any recent communication from the Luxembourg banks.