Ethics and governance in the European Financial centers

Minister Luc Frieden was invited last May 2007 to participate to the annual assembly of the ALPP (Association Luxembourgeoise des Professionnels du Patrimoine), which is a non-profit organisation that includes over 100 independent companies, established in Luxembourg.

What was said is perfect illustration of the fact that in Luxembourg business is business without shame but with governmental support.


"We are loosing business and many clients are discouraged. It is necessary to renew and inject dynamism into the financial center", the Chairman said.


"Should a large financial center like ours exaggerate or be more lax with the risk of a couple of scandals. Yes we may have exaggerated some procedures but this was a general trend in Europe. I hope we have not done badly at that is still possible to go backward. I am ready to give up some requirements", Minister Frieden said.

The center is not lax enough compared to other centers and especially the United Kingdom and even Switzerland?


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Last Friday the Isle of Man confirmed that its tax system, which it claimed complied with the requirements of the EU Code of Conduct for Business Taxation, has failed to secure the approval of the European Commission. As the Isle of Man press release on the issue said:

The EU Code Group met on 16 October 2007, and considered the DPC. It considered the DPC only and not the Isle of Man’s ‘0/10′ taxation system for companies which conforms to the principles of the Code of Conduct. The DPC, however, was found by the EU Code Group not to conform to the principles of the Code of Conduct.

Read official press release

Read Richard Murphy's analysis

The majority of Maltese believe it is very easy to evade income tax and conduct undeclared work, according to a new EU survey.
It is interesting to observe that data are not available in Ireland and Luxembourg.

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EU survey