Savings Directive Decision Deferred
Friday, June 4, 2004
European finance ministers postponed from 1 June until the end of the month a
decision on whether to implement the European Union Savings Tax Directive (EUSD)
on 1 January 2005, according to a wire report.
The postponement, which was made on Wednesday, came primarily because there
is uncertainty if Switzerland could comply with the measure by the scheduled 1
January date.
Although Switzerland reportedly agreed to the EUSD in mid-May, there is a
possibility that its legal procedure might require a referendum by the Swiss
people to ratify implementation of the Directive.
Some European financial experts have indicated that it would be impossible
for Switzerland to implement the EUSD on time.
As a result, some EU jurisdictions that have already agreed to the measure,
such as Luxembourg, have indicated that they would not implement the EUSD unless
it was done at the same time as Switzerland.
Further complicating matters is the fact that other EU territories, namely
Lichtenstein, Monaco, Andorra and San Marino, have also yet to sign on to the
EUSD.
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