7. Germany, Liechtenstein in tax row

The German Chancellor Angela Merkel has urged Liechtenstein to take rapid action to introduce measures aimed at creating greater transparency in its banking sector. Angela Merkel said she expected Liechtenstein to sign up to the EU directive on money laundering.

Amid a growing diplomatic row, Chancellor Merkel was fairly blunt after she held talks with the prime minister of Liechtenstein, Otmar Hasler. At a news conference, the German Chancellor called for more transparency and she put pressure on Liechtenstein to crack down on fraud and co-operate with tax authorities in other countries.

German prosecutors have been searching offices and banks across the country, as part of their investigation into hundreds of Germans suspected of dodging taxes by channelling money into Liechtenstein. It all started last week when Klaus Zumwinkel resigned as chief executive of Germany's postal group after police raided his home. Liechtenstein's secretive banks and foundations have come under intense scrutiny.

Speaking in Berlin, the prime minister, Otmar Hasler, was keen to point out his government had stepped up efforts to bring criminals to justice and, he said, Liechtenstein would reform the laws governing the controversial foundations.

German politicians claim Liechtenstein's secretive banking laws have encouraged tax dodgers to take refuge there. As prosecutors continue their investigation, this affair is far from over.

blunt

saying what you think without trying to be polite and avoid hurting someone else's feelings

called for more transparency

encouraged Liechtenstein's financial institutions to be less secretive and more open about the way they conduct business

to crack down on fraud

to start dealing with people who obtain money by deceiving others in a more severe way

dodging taxes

avoiding paying taxes

channelling money into Liechtenstein

transferring money so it is put into bank accounts in Liechtenstein

raided

entered suddenly (in order to find something)

come under intense scrutiny

begun to be carefully looked into/examined (by the authorities)

stepped up efforts

increased the speed and amount of action (that is needed to achieve something)

to take refuge

to look for protection from trouble

Is far from over

will continue for a long time

Answer the questions:

1. What measures has Angela Merkel urged Liechtenstein to introduce?

2. What directive did Angela Merkel expect Liechtenstein to sign?

3. What did the German Chancellor do at a news conference?

4. What efforts had Liechtenstein’s government stepped up?

5. What laws will Liechtenstein reform?

6. What have Liechtenstein's secretive banking laws encouraged?

Find Russian equivalents to the following expressions from the text:

to introduce measures, prosecutors, to bring criminals to justice, to take refuge.

Translate the following passage.

Amid a growing diplomatic row, Chancellor Merkel was fairly blunt after she held talks with the prime minister of Liechtenstein, Otmar Hasler. At a news conference, the German Chancellor called for more transparency and she put pressure on Liechtenstein to crack down on fraud and co-operate with tax authorities in other countries.