WRITTEN QUESTION E-1316/01

by Theresa Villiers (PPE-DE) to the Commission

(3 May 2001)

Subject: Directive on the taxation of savings

1. Could the Commission please state what progress has been made in negotiations with the US and key third countries, including Switzerland, Liechtenstein, Monaco, Andorra and San Maríno, with a view to securing the introduction of equivalent measures in those countries before the directive on the taxation of savings is adopted?

2. Could it please state if it has undertaken a business impact assessment and/or a feasibility study on information exchange in the directive on the taxation of savings?

3. Could it indicate when the new draft directive on the taxation of savings is likely to be available?

Answer given by Mr Bolkestein on behalf of the Commission

(4 July 2001)

1. At the European Council in Santa Maria da Feira on 19 and 20 June 2000, Member States decided that, once agreement had been reached on the substantial content of the Directive on taxation of savings income and before its formal adoption, the Presidency and the Commission should enter into discussions with the United States and five other key third countries (Switzerland, Liechtenstein, Monaco, San Maríno and Andorra) in order to promote the adoption of equivalent measures by those countries. At the same time, the Member States concerned made a commitment to promote the adoption of the same measures in all relevant dependent or associated territories. In accordance with the timetable of Feira, the Ecofin Council on 26/27 November 2000 agreed the substantial content of the savings proposal. In January 2001, the Presidency and the Commission wrote letters to the third countries named in the Feira agreement in order to invite them to enter into discussions on the proposed Directive. As explained in those letters, the discussions, at this stage, do not have the character of formal negotiations, but serve mainly to inform the third countries of the agreement reached last November 2000 and to gauge their reaction on this agreement and the prospects for the introduction of equivalent measures.

Following these letters, a first round of exploratory talks has been completed at technical level with the six countries, while political contacts have been taken up with some of them. A first report on these discussions is presented at the Ecofin Council meeting on 5 June 2001. At that meeting, the Member States concerned reported on the state of play of the discussions with their dependent and associated territories. The Parliament will be kept informed on these discussions.

2. As for all new legislative proposals, the Commission has carefully examined the impact of the proposed Directive(1) on taxation of savings income on market operators. The proposed measures take full account of the need to preserve the competitiveness of European financial markets. The obligations placed

on paying agents inevitably will entail some additional administrative costs for the market operators concerned and may require them to adapt their administrative procedures and computerised systems. However, every effort has been made to keep additional compliance costs for market operators to a minimum. It may be noted that a Council working group is currently examining the technical details of the information exchange system.

3. The Commission is preparing a new proposal for a Directive on taxation of savings income, which will replace its 1998 proposal, taking into account the conclusions of the Feira European Council of 19/20 June 2000 and the Ecofin conclusions of 26/27 November 2000. The Commission intends to present its new proposal to the Council, the Parliament and the Economic and Social Committee in the coming months.

(1) OJ C 212, 8.7.1998.