Reports indicate that the EU’s year-long gridlock over the controversial savings tax directive will continue into the New Year.

EU Economics and Finance Ministers had set a deadline of the end of 2002 to agree on the Directive. Reports are that the deadline has been set back to January 21, as non-EU countries are proving to be stumbling blocks for the package. Switzerland’s proposed withholding tax apparently has failed to satisfy those countries (including Luxembourg) which want to see identical measures for both members and non-members alike. This would include full exchange of information. *(Check Industry News, Special Reports and Newsletter archives for related news items)*