Liechtenstein has called for a compromise with European countries amid a world wide tax fraud investigation of its banks after a tax evasion scheme hiding billions of euros from tax authorties was unveiled.

Lichtenstein Prime Minister Otmar Hasler said in Brussels yesterday the principality wanted to reach a ‘reasonable agreement’ with neighbours who are calling for greater transparency as they hunt for the hidden billions, according to Agence France Presse.

The principality has so far resisted calls to lift its banking system's secrecy and help foreign probes into the tax fraud, inviting a threat from Germany to refuse ratification of a Schengen free travel zone membership.

German Finance Minister Peer Steinbrueck told the Ruhr Nachrichten newspaper he would raise the issue at a meeting of EU finance ministers in Brussels next week.

Further reading:

Germany plans to involve EU in tax evasion probe

MPs to probe Liechtenstein informant deal