core sector communique

Finance Minister Calls for Transparency in Financial Transactions, Prevention of Money Laundering and Increased Pressure on Tax Havens to Share Information During his Bilateral Meet With his French Counterpart on the Sidelines of G-20 Fms And Central Bank Governors’ Meet in Paris

Union Finance Minister Shri Pranab Mukherjee called for the need of transparency in financial transactions, prevention of money laundering and thereby put increased pressure on tax havens to share information. Shri Mukherjee referred to the French Minister for Economy, Industry and Employment, Ms. Christine Lagarde’s commitment to share information on Indian money in Swiss banks. The Finance Minister drew the attention of the French Minister to the amendments proposed by India in the Double Taxation Avoidance Convention (DTAC). He suggested that the negotiations should start early.

Earlier, Union Finance Minister Shri Pranab Mukherjee held a bilateral meeting with his French counterpart on the sidelines of G-20 Finance Ministers’ and Central Bank Governors’ Meeting in Paris on 18th February, 2011. Both the leaders discussed a number of bilateral and multilateral issues. The Finance Minister Shri Mukherjee underlined the need for greater engagement in trade and investment between the two countries. Shri Mukherjee sought French expertise in waste recycling and in water treatment for utility services.

During his bilateral meet, the Finance Minister, Shri Pranab Mukherjee also referred to the agreements signed between Areva and NPCIL for setting-up nuclear power plant in India and the need to expedite the execution of same.

The Finance Minister also drew the attention of French Minister for Economy, Industry and Employment to other important issues during the French Presidency of G-20 including ensuring economic recovery on a sustainable basis, problems of volatility of commodity prices, especially those of food and energy and ensuring that the volatility of capital flows do not disturb the equilibrium.

The French Minister for Economy, Industry and Employment, Ms. Christine Lagarde indicated that the French team was working on the amendment proposed by India on the DTAC and the information for tax purposes would be discussed shortly with Indian administration. She had the understanding that the negotiations between Areva and NPCIL are making good progress. Her feedback was that investments to India are on track. She said that France desires to increase investments in India. The French Minister for Economy, Industry and Employment thanked India for its support for the G-20 agenda, which was aiming to deal comprehensively with all issues affecting all types of countries.