During the course of the debate, Swiss Federal Councillor Widmer-Schlumpf underlined the importance of close relations between the two countries and alluded to the major role that France plays as Switzerland’s third largest commercial trading partner.

The head of the FDF underlined Switzerland’s interest in finding a lasting solution to the debt crisis in the eurozone, noting that Switzerland, as a member of the International Monetary Fund (IMF), has contributed to financial assistance programmes for indebted countries.

The two finance ministers discussed implementation of the existing Franco-Swiss double taxation agreement (DTA). Federal Councillor Widmer-Schlumpf underscored the willingness of Switzerland to collaborate with France within the framework of the negotiated agreements, and emphasized the significant efforts made by the Confederation to apply the Organization for Economic Cooperation and Development’s (OECD) international standards in tax matters.

Widmer-Schlumpf ended by alluding to recent criticisms from France regarding Swiss collaboration in tax matters.

The two ministers agreed to hold further talks in Switzerland at the beginning of 2012.

Back in April, Switzerland announced plans to amend the existing bilateral DTA with France, explaining that the treaty, approved by parliament on June 18, 2010, would be supplemented with an interpretation clause, stating that the requirements for an administrative assistance request should not hinder an effective exchange of information.

At the time, the Swiss Federal Administration explained that as a result of the new clause, Switzerland and France would be bound by the requirements set out in the agreement for an administrative assistance request not to be interpreted in a formalistic and restrictive manner.

It stated that: “In accordance with the Federal Council decision of February 13, 2011, in future indicating the name and address of the taxpayer and the information holder is no longer absolutely necessary for processing administrative assistance requests, provided that the identification occurs by other means and fishing expeditions are not involved.”

However the French government is still calling for an automatic exchange of tax information between countries, a solution that has already been adopted by the European Union (EU), and which is expected to enter into force in 2013, despite continuing opposition from Luxembourg. The EU would like to extend this provision to third countries such as Switzerland.

Despite advances from and talks with the Confederation, France has reportedly ruled out the idea of concluding a bilateral tax deal with Switzerland, similar to those negotiated with the UK and Germany.

Although the French authorities are urgently seeking additional revenues, including recourse to increased taxation of the country’s wealthiest, the French finance and budget ministries are said to have dismissed the idea of such an agreement, even though a deal would undoubtedly serve to yield much-needed tax revenues.

Undeclared assets held by French taxpayers in Swiss accounts have been estimated at around CHF90bn (USD114bn).