Andorra/France

Sarkozy may resign as Andorran co-prince over bank secrecy laws

Article published on the 2009-03-26 Latest update 2009-03-26 09:53 TU

French President Nicolas Sarkozy
(File photo: Reuters)

French President Nicolas Sarkozy told his ruling UMP party Wednesday that he was ready to resign as co-prince of Andorra if the country does not ease its bank secrecy rules. The tiny country in the mountains between France and Spain is one of several countries whose banks are accused of providing refuge for people evading taxes.

“I want a list of tax havens and I want to punish them,” said Sarkozy to the MPs of his ruling party. The G20 meeting in London on 2 April will draft a list of all countries with bank secrecy laws allowing people to evade taxes.

Switzerland, Luxembourg and Austria announced earlier this month that they would ease their bank secrecy laws and aid in tax evasion investigations. Leichtenstein, Monaco and Andorra, which are on an list of unco-operative tax havens compiled by the Paris-based Organisation for Economic Co-operation and Development (OECD), have pledged to ease their regulations.

If negotiations to ease regulations fail, “I will resign as co-prince of Andorra,” said Sarkozy.

“I do not want banks to work with the Cayman Islands, Hong Kong and Monaco any more,” he said, adding that he would discuss Monaco’s coming into line with Prince Albert of Monaco.

“Even Switzerland needs to let up,” he said.

Andorra is a parliamentary Principality, with a Prime minister. Sarkozy is co-prince with the Bishop of Urgell, Joan Enric Vives i Siclia.