EU’s Juncker Under Fire For Luxembourg Tax Haven

The new European Commission president took political responsibility on Wednesday for Luxembourg’s role in helping global companies avoid tax and Germany urged swift action to fight tax evasion in Europe.

Jean-Claude Juncker, who served as finance minister and prime minister of Luxembourg for more than two decades, reacted for the first time since investigative journalists reported last week that the tiny state had granted deals to some 340 companies allowing them to avoid tax.

At a time of near record unemployment in the European Union, the affair has overshadowed the start of the new Commission, billed by Juncker as “Europe’s last chance” to show citizens the bloc can act in their interests.

The revelations put Juncker under intense pressure to make clear his position on the tax deals and raised questions about whether they create a conflict of interest for him.

“I am politically responsible for what happened in each and every corner and quarter (of Luxembourg),” he said, adding that while in line with Luxembourg and European laws, the tax practices may not have been ethical.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza