A "large majority" of EU finance ministers backs a compromise proposal on the taxation of savings, although Austria, Belgium and Luxembourg have expressed "reservations", an official of the EU's Danish presidency said today.
The official said negotiations are continuing at a ministers' special meeting in a bid to reach agreement on the savings tax package, due for adoption by December 31st.
EU member states have made support for the package conditional on the agreement by such non-EU countries as Switzerland to accept equivalent measures, including the full exchange of information on savings accounts.
Austria, Belgium and Luxembourg are unhappy with the 35 per cent rate of withholding tax proposed by the presidency as an interim measure, pending their implementation of the package in 2011.
One EU source said ministers may reach an agreement in principle for heads of state to finalise at their two-day summit in Copenhagen from tomorrow.
However, the presidency has argued that the summit should be devoted to EU enlargement.
AFP