Juncker Defends His Record Over Luxembourg Tax

12/11/2014

By Matthew Dalton

Luxembourg Became A Global Financial Center When Junker Was Prime Minister

Jean-Claude Juncker, the new president of the European Commission, defended his record as prime minister of Luxembourg on Wednesday against mounting criticism that he helped the tiny nation become a haven for corporate tax evaders.

Mr. Juncker’s remarks were his first public response since the International Consortium of Investigative Journalists published a trove of confidential tax rulings made by Luxembourg’s tax administration during his time as prime minister that helped the world’s largest companies slash their tax bills.

“There is nothing in my [record] suggesting my ambition was to organize tax evasion in Europe,” Mr. Juncker told reporters during a brief news conference.

“I’m in favor of tax competition,” he said. “I’m against unfair tax competition.”

Mr. Juncker was prime minister of the tiny grand duchy, squeezed between Germany, France and Belgium, from 1995 through 2013. During that time, Luxembourg became a global financial center, as companies flocked to the country’s low tax rates.

The commission, the European Union’s executive arm, is now investigating whether his government violated EU rules by approving tax agreements with Amazon and Fiat that led to ultra-low tax bills for the companies.

Mr. Juncker said that these tax bills were approved by the government’s tax administration, which is independent of the government’s political leadership.

“If this is leading to a situation of non-taxation then I would regret that,” he said.

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