The United Nations Covenant should be interpreted to prohibit state mandated bank secrecy, which facilitates tax evasion by wealthy residents of the developing world. In other words, bank secrecy laws of Lichtenstein, Panama, and Switzerland, for example, violate internationally recognized human rights.
I am skeptical about the effectiveness of a shift towards more transparency. I do not believe that this could help overcoming the growing gap between legality and legitimacy in international tax law. Especially, I do not see how the gap can be reduced by making taxpayer information public. Or better, I do not believe this is the right path that States should pursue.
Privacy, at least with respect to taxes, is the shield of the villains. The legal or constitutional issue should not focus on preventing the flow of information but rather on the way the informed uses the information.
Information is the new currency of international tax policy. Countries have successfully developed techniques and strategies to enhance the flow of tax-relevant information across borders. This shift requires adaptations with respect not just to human rights but to democracy: Lawyers should reconsider the traditional core of parliamentary power to tax. Democratic assent to the imposition of taxes needs to be informed consent. As long as lawmakers cannot assess the economic impact of existing and new tax rules in a global environment, lawmaking is a blind flight.
In February 2016, while David Cameron and the other EU-leaders were busy negotiating the terms of Britain’s membership of the Union, the European Central Bank (ECB) did something curious. It changed its self-description on its website from: the ECB “is the central bank for Europe's single currency, the euro” to: the ECB “is the central bank for the euro area” and “of the 19 European Union countries which have adopted the euro.” The ECB, it seems, confines itself no longer to being the central bank of a free floating currency, defying and denying national specificities and territorial borders. Furthermore, its governmental activities are no longer limited to governing the currency: it claims to govern for the euro area as a central bank of the 19 euro countries.
Dilma Rousseff, the President of Brazil, is about to be forced out of office soon. Any impeachment process is, first and foremost, political, dealing with questions of power and influence. To be sure, political reforms such as the introduction of measures to significantly reduce the number of parties in Congress are urgently needed. Unfortunately, there is no immediate remedy to this significant deficiency in sight. And yet, it is clear that any governing coalition to function in Brazil’s political system requires a president extremely skilled in engaging with the legislative, creating deals, forging alliances and making compromises. Dilma Rousseff is facing the end of her political career because she has utterly failed in this respect.
Iceland is, once again, in political turmoil after the Panama Papers revelations. This might revitalize a project which had fascinated constitutionalists from all over the world before it seemingly was derailed by the political establishment - a new constitution written by the citizens of Iceland themselves.
If the U.S., the European Union, and Japan were to agree to impose a tax on income flows to tax havens, the tax-evasion problem would largely be solved without the need for cooperation from the havens. Using a 30 percent tax will do the trick. What prevents this obvious solution from happening is that the U.S. is willing to aid and abet tax evasion by Europeans, while the EU is willing to aid and abet tax evasion by Americans. This reflects the political power of the rich on both sides of the Atlantic.
The Panama papers is a treasure trove of information on the activities and clientele of a large, but not atypical, legal firm operating in an offshore financial centre or the tax haven of Panama. It follows a series of spectacular leaks by the International Consortium of Investigative Journalists that included the Lichtenstein leak, HSBC, the Lux-leaks and now the Panama papers. What have we learned from this latest leak so far?
While islamophobia is on the rise after the carnages of Paris and Bruxelles, recent developments in Italy may foster the confidence in the freedom of religion of European Muslims. In a ground-breaking decision, the Italian Constitutional Court has nullified a regional “anti-mosques law” enacted by the Lombardy Region one year ago, discriminating the Muslim community of this rich and populated area of Northern Italy.
13. September 2025
Giovanni Capoccia
12. September 2025
Anne Peters
12. September 2025
Anne Peters