Luxembourg and Austria continued to block amendments to the Savings Directive at the ECOFIN meeting held on 10 December. In May this year, the European Council had called for the amended directive to be adopted before the end of the year, however no agreement could be reached. Speaking after the meeting, Commissioner Algirdas Šemeta said that “it is not just disappointing that we could not agree on the Savings Directive today - it is incomprehensible”. Based on article 115 of the TFEU, the directive requires unanimity for adoption by the Council.

The proposed amendments include enlarging the scope of the directive to include all types of savings income and products that generate interest or equivalent income. It would include life insurance contracts, as well as a broader coverage of investment funds and, using a “look-through” approach, tax authorities would be required to take reasonable steps to establish the identity of beneficial owners.

According to Tax-News.Com, Austria and Luxembourg will only agree to the amendments once negotiations on equivalent measures have been concluded between the EU and third countries, namely Switzerland, Liechtenstein, Andorra, Monaco, and San Marino.