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Luxembourg's incoming government opposes EU FTT


Added on 29/11/2013

Tasked with leading the formation of a future Government in Luxembourg, formateur Xavier Bettel recently presented an update on progress, and confirmed Luxembourg's clear rejection of a tax on financial transactions (FTT), reports Tax News.

According to Bettel, Luxembourg's prospective coalition partners, the Democratic Party (DP), the Luxembourg Socialist Workers' Party (LSAP), and The Greens (Déi Gréng), have agreed that the future coalition Government will adopt the same FTT stance as the outgoing Government. Therefore, Luxembourg will continue to rule out the idea of such a tax, as currently envisaged by 11 European Union (EU) member states, within the framework of enhanced cooperation, Xavier explained.

Determined to boost the reputation of the Luxembourg financial centre, the negotiating parties underlined their firm commitment to promoting a "clean" financial centre, to end the negative image of the Grand Duchy as a so-called "tax haven," deemed uncooperative in tax matters. The key words are "stability, reliability, and quality," Xavier stressed.

Finally, the prospective governing parties pledged to pursue a policy aimed at diversifying the Luxembourg economy, and united on plans to reform the country's bankruptcy law.

 

A conclusive plenary meeting was set for November 29, with the discussions focussing notably on the public finances.