Ethics and governance in the European Financial centers

Claude Meisch, a Luxembourg member of parliament has yesterday questionned the Minister of Finances on banking secrecy in the context of the meeting against tax havens that took place today in Paris.

He asked five questions for which I will provide an answer or a comment.

• What will be the attitude of the Luxembourg government at this meeting?

Luxembourg did not participate. So did not Switzerland.

• How Mister the Minister does it react vis-a-vis the reproach also addressed to Luxembourg to exonerate in a perpetual way to cooperate with the other tax authorities?

I will quote (In L’Essentiel) Lucien Thiel, who is former chairman of the Luxembourg Bankers’ association and curently MP in the same party as the Minister of Finances :

It is not our duty to control if the taxpayer was honest

we are not compelled to communicate clients’ data

This means two words for other countries that require cooperation : up yours !

• Is Luxembourg in the future likely to see itself registered on the list of tax havens drawn up by the OECD?

To be fair, it should be registered if Switzerland is, as requested by Germany, all the more than Switzerland demonstrates less permissiveness than Luxembourg.

• How Mister the Minister explains the reason why the financial crisis is now called upon in order to fight against banking secrecy despite it is not the the root of the crisis?

The problem is the abuse of banking secrecy and low taxes to attract investors in a lax jurisdiction.