Liechtenstein has been castigated by the German finance minister for failing to improve its financial transparency.

Peer Steinbreuck said negotiations between Europe and Liechtenstein over an anti-fraud agreement needed to be restarted.

'The state of negotiations we've reached so far with Liechtenstein is simply not good enough,' said Steinbreuck according to Reuters.

High earners from Germany and other jurisdictions exploit tax loopholes to dodge tax in places like Liechtenstein and others, which creates a huge threat during tough economic times.

Germany launched a probe into its citizens holding Liechtenstein accounts earlier in the year, provoking fury from the Liechtenstein authorities.

Further reading:

Taxman plans new offshore amnesty

Liechtenstein calls for compromise