EC clamps down on tax evasion
The European Commission is seeking to end tax evasion through secret accounts both within the EU and in countries like Switzerland and the US that could attract deposits from EU citizens.
As a result Switzerland may face financial sanctions unless it complies with the EC, the EU Commissioner for the internal market Frits Bolkestein told EU finance ministers.
This comes after Switzerland failed to come up with an adequate proposal for supplying information about savings accounts held by EU residents.
Switzerland said it would only release information where criminal activity was suspected. A ban on Swiss investment in the EU is one possible sanction, Commission officials said.