Cautious welcome for deal to settle EU tax battle
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.GORDON BROWN, the Chancellor, made progress yesterday in his efforts to head off a European-wide savings tax which could cost thousands of jobs in the City of London.
The Treasury gave a cautious welcome to a compromise plan by the European Commission and Finland, which holds the EU's rotating presidency, aimed at resolving a two-year battle between Britain and its partners.
The surprise move is likely to defuse a row which threatened to overshadow a summit of European leaders in Finland starting tomorrow. But after studying the plan, Treasury officials warned that many "big questions" had not yet been answered. A final agreement could still be months away.
When he meets fellow EU finance ministers in Helsinki tonight, the Chancellor will say that the revised proposal provides a basis for further discussion. But he will warn that the Government will not sign a directive which damages London's lucrative Eurobond market and will need to consult the City closely over the new plan.
To stamp out tax evasion, the original directive would have forced EU countries to levy a 20 per cent tax on savings held by citizens of other member states, or to force banks to disclose the income to those countries so they can recoup the tax. The Government fears this would mean a flight of capital to the US, Switzerland and other countries with less rigorous rules.
In yesterday's concession, Brussels proposed "special arrangements for international bonds which would require the UK neither to impose a withholding tax on interest payments nor to introduce an additional layer of regulation".
Although Treasury officials described the words as encouraging, they warned that the devil would be in the detail - whether existing Eurobonds would be protected and whether the City needs to provide more information.
Summit preview, page 16
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments