Another false dawn. The hopes kindled overnight that a deal was in the offing on the savings directive, deadlocked for three years, were dashed yesterday afternoon as it became clear that Austria was not budging.
Even Luxembourg, whose economy has to no small extent depended on the foreign fortunes deposited in its vaults, conceded on the principle that it would have to provide information on depositors to their tax authorities - in seven years' time.
But the Austrians remained adamant that they face an insuperable constitutional obstacle, and weary finance ministers gave up on the struggle for another day.
At stake was agreement on an anti-tax-evasion directive that offered member-states the option, known as "co-existence", of either taxing non-resident account-holders at a minimum rate, or of supplying information on their accounts to their tax authorities.
Ireland has supported the Commission's proposals for a "co-existence" model, although the Minister for Finance, Mr McCreevy, has also been keen to see speedier progress on the issue at a global level through the Organisation for Economic Co-operation and Development. He has argued that there is little point in closing EU tax havens if money simply finds another home further afield.
Yesterday a Portuguese Presidency compromise met a key British concern about capital flight by allowing for two years of talks at global level, with a full range of third countries from the US to the Caymans, to see if an information-sharing agreement can be reached between the respective tax authorities.
Once "sufficient reassurances" had been obtained on that score, and not later than October 2002, then a five-year phase-out of banking secrecy would become mandatory to allow a system based exclusively on exchange of information between tax authorities.
In the five-year interim period states would have a choice of passing information or imposing a minimum withholding tax.
Later, progress was made by distinguishing between third countries and associated countries in an attempt to force member-states to deal firmly with tax havens under their wing, such as the Isle of Man or Jersey in the British case and the Dutch Antilles in the case of the Netherlands.
Luxembourg is understood to have indicated that it might be prepared to accept a sunset clause on banking secrecy, and has been concentrating on persuading fellow ministers to defer setting an actual minimum tax rate instead of the suggested 20 per cent rate which it regards as too high.
But in the end the Austrians held out, 14-1, and the issue was referred back to the French presidency.
The heads of government meanwhile agreed a series of follow-up measures for the Lisbon e-summit, ranging from a charter for small businesses to agreements on the development of lifelong learning.
EU leaders also yesterday unanimously backed the accession of Greece to the euro from January 1st, 2000, with many paying tribute to the difficult reform process that has brought the Greek economy to this point.
"It's a great day for Greece," said their Foreign Minister, Mr Giorgios Papandreou. He confirmed that Greece will move to adopt notes and coins in January 2002.
Britain and Greece hope to have a statement on terrorism included in the closing remarks of the summit, the Greek Foreign Minister, Mr George Papandreou, said.
