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Jean-Claude Juncker : good international questions, bad internal answers

Luxembourg Prime Minister Jean-Claude Juncker said interesting things in an interview published Wednesday in le Temps.

Let's comment a couple of sentences freely translated.

The current bludgeoning disturbs me because it is based on an imposture while associating bank secrecy and tax haven, and because it does not hold any account of our public opinion.

Which public opinion? Who decides in the country?
Bankers actually decide. For example they created banking secrecy that was not in the Luxembourg tradition.

At the moment when G20 decide to increase regulation and to do a detailed examination of tax havens, its members have to be beyond any reproach. At the European Summit, it is my intent to ask for action. It is essential that British Territories, dependants of the British Crown (note by the editor: Jersey, Guernsey ...) in turn accept banking information exchange. I don't see either how the present review of the European Savings Directive can continue to ignore the British "Trusts", being at this moment out of the Detective's reach. The United Kingdom cannot continue to shelter large European fortunes from their national fiscal authorities. I want to take this a step further: it would be an aberration that the G20 would think about including Switzerland and Luxembourg in a blacklist, without including American States such as Delaware, whose LLC's (Limited Liability companies, note by editor) are exempt of any taxation! Morality in fiscal regulation matters is only credible if it is integral. Courage, and I bring this to France's and Germany's attention, has to be international."

I can agree with the paragraph, but I will say again that the British regulator is much more credible in its duty than the Luxembourg regulator.
Additionally, in the UK there is a public debate with people like Richard Murphy or Prem Sikka or John Christensen that do not have their equivalent in Luxembourg, where everyone agrees to hush up issues and protect Mammon.

This is a huge difference between both jurisdictions.

And by accusing other jurisdictions while not questioning on dysfunctions in his own jurisdiction, Prime Minister Juncker is not willing to correct what harms the reputation of Luxembourg.

17:36 Posted in Luxembourg | Permalink | Comments (0)

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