Tax wars: EU playing catch-up with US law

Last week, while showcasing draft EU laws on tax transparency, commissioner Algirdas Semeta told media in Brussels he is building "the most comprehensive information exchange system in the world."

He added: "The EU system will become even broader than the US system."

It is an astonishing claim.

The wide-reaching impact of the new US regime - the Foreign Account Tax Compliance Act (Fatca), which came into force on 1 January - has been demonstrated by a storm of angry reactions in worldwide financial centres.

Some of Semeta's proposals, notably his amendments to the EU Savings Tax Directive (EUSTD), do broaden the scope of information to be shared inside Europe and do go beyond Fatca.