US Tax Cheat Deal Mired in Legal Minefield
With the clock ticking down on further prosecutions of Swiss banks, the (Swiss) government is expected on Wednesday to announce a remedy to United States demands for banking data, thus solving a long-running tax evasion dispute.
The US wants Swiss banks to hand over information of their US business dealings, including the names of employees and third-party lawyers and asset managers. Finding a legally compliant solution was complicated by parliament’s rejection on June 19 of the so-called Lex USA bill which aimed to enable the process.
ECB to Leave Rates, Reassure No Exit from Stimulus
European Central Bank President Mario Draghi is likely to stress Thursday that the bank is still a long way from following the U.S. Federal Reserve and start looking at phasing out stimulus.
Economists expect the ECB to leave its benchmark interest rate for the 17 European Union countries that use the euro unchanged at a record low of 0.5 percent when its 23-member council meets at its headquarters in Frankfurt, Germany.
Cyprus’ Banking Revamp Underpins Economic Reboot
It’s been just over 100 days since its financial rescue and Cyprus is struggling to cope with life under the terms of its international bailout.
The country’s shell-shocked banking system is still reeling from a punishing restructuring while harsh capital controls at the banks are holding back spending. All of which is hitting Cyprus’ fragile economy, which is projected to shrink by more than 9 percent this year while unemployment is expected to soar. At the same time, international ratings agencies are warning that the country has defaulted on its debts.