Europe moved closer to lifting banking secrecy on 22 May after Austria revealed it was ready to share data on foreign depositors by the end of 2013, but support from other countries could, reportedly, fade if efforts to strike a similar deal with Switzerland fall through.
In a meeting of EU leaders to discuss fighting tax fraud by lifting bank secrecy, Austrian chancellor Werner Faymann said, "I believe we will manage the exchange of data by the end of the year."
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The move comes as EU countires aim to stop tax evasion and close loopholes. Nearly all EU member states exchange information about which bank account holders receive which interest payments – an agreement known as the Savings Directive.
Faymann is certain to come under pressure, however, if Switzerland does not sign up to a similar plan.
Luxembourg also highlighted the importance of a deal first with Switzerland. Luxembourg Prime Minister, Jean-Claude Juncker, said, "We would like that there are first negotiations with Switzerland. In light of these negotiations, we will, I hope, decide before the end of this year."
Switzerland is the biggest offshore centre in the world, with US$2 trillion of offshore assets.
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By GlobalDataMost developed countries share information on taxpayers and depositors on demand as automatic exchange of information makes it easier for tax authorities to spot tax evasion.
