Europese druk op Zwitserland om belastingontduiking te bestrijden (en)

Switzerland has rejected an appeal from EU finance ministers to sign an accord aimed at combating tax evasion.

The country, which is not a member of the EU, has continued to link its agreement on the savings tax with demands to be exempted from another agreement on cracking down on smuggling and VAT evasion within the "Schengen" free movement area.

The EU, however, is stepping up pressure on Switzerland to agree with new EU savings tax rules, which aim to crack down on offshore fraud and money-laundering, particularly as the June deadline looms.

The EU's own tax savings scheme cannot go into force without Switzerland signing an agreement on savings tax.

"The unanimous view of member states is to not have any coupling with any other item," Irish Finance Minister Charlie McCreevy said at yesterday's meeting of EU finance ministers in Brussels.

"The strong and unanimous message of the finance ministers today is to conclude the negotiations with Switzerland as quickly as possible".

At the same meeting, France was warned that it risks breaching the euro's budget deficit rules for the fourth successive year in 2005, despite its assurances last year that it would bring its deficit within the 3% ceiling by 2005 at the latest.

Economic and Monetary Affairs Commissioner Pedro Solbes also warned that the Netherlands and the UK risk breaching the deficit targets in 2004.