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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.