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- Title: GERMANY/LIECHTENSTEIN: Liechtenstein rejects tax criticism before Berlin talks
- Date: 21st February 2008
- Summary: (EU) BERLIN, GERMANY (FEBRUARY 20, 2008) (REUTERS) GERMAN CHANCELLOR ANGELA MERKEL WELCOMING LIECHTENSTEIN'S PRIME MINISTER OTMAR HASLER OUTSIDE CHANCELLOR'S OFFICE GUARD OF HONOUR MERKEL AND HASLER INSPECTING TROOPS LIECHTENSTEIN FLAG FLYING
- Embargoed: 7th March 2008 12:00
- Keywords:
- Topics: European Union,Finance
- Reuters ID: LVA9AKR4CCOWR4UYW8LSKH7DSEC1
- Story Text: Liechtenstein dismisses German criticism of the tiny Alpine country's financial policies as misguided ahead of talks with German Chancellor Angela Merkel.
The prime minister of Liechtenstein dismissed German criticism of the tiny alpine country's financial policies as misguided ahead of his Wednesday (February 20) meeting with German Chancellor Angela Merkel.
Liechtenstein has come under fire in Germany after prosecutors announced last week they were investigating hundreds of people suspected of evading taxes by parking money in secret bank accounts in the principality.
Prime Minister Otmar Hasler told reporters after his meeting with Merkel in Berlin that "we are willing and ready to cooperate."
Yet he said that: "it's not legitimate to put (Liechtenstein's) trust system on a level with tax evasion. The difference must be made,"
Hasler said.
Since the investigation came to light, German politicians have said tax havens like Liechtenstein have no place in Europe and vowed to press for changes to its secretive banking rules.
Merkel said after the meeting: "The German government expects its citizens in Germany to pay their taxes according to the law. We would not welcome it if Liechtenstein banks were to assist people to break the law."
In the Liechtenstein capital Vaduz, Justice Minister Klaus Tschuetscher told a news conference: "Germany says, dear people of Liechtenstein, you have a product, take it off the market -- just because some German who might have evaded taxes invested the money here."
Liechtenstein, a tiny slice of land between Switzerland and Austria, whose economy is heavily dependent on the financial sector, is one of only three countries on the Organisation for Economic Cooperation and Development's (OECD) black list of uncooperative tax havens, alongside Andorra and Monaco.
Merkel and German Finance Minister Peer Steinbrueck were expected to press Hasler for better cooperation and more transparency on cross-border tax issues.
A day earlier, Liechtenstein's Crown Prince Alois was sharply critical of Germany, suggesting Berlin broke laws by paying an informant over 4 million euros ($5.89 million) for stolen bank data that has formed the basis of a nationwide probe. - Copyright Holder: REUTERS
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