ECOFIN Council: no agreement on tax package

07 March 2003

Although Switzerland and the European Union reached a tentative agreement on savings taxation, general reservations from the Italian delegation and a reservation from the Portuguese prevented a final agreement on the tax package during last ECOFIN Council in Brussels.

Switzerland accepting the main points of the agreement with the EU, is also asking to come under the Directive on interest and royalty payments between companies in the same group. Nevertheless Switzerland signalled that it will not sign a final agreement until it has guarantees about the result of the negotiations on other issues, such as its integration into the Schengen area.

The Council agreed to return to the discussion of this issue at its next ECOFIN Council on 19 March 2003, with a view to adopting the 'package' before the European Council on 20-21 March 2003.

ECOFIN results

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