THE TRANSATLANTIC MAGAZINE
THE TRANSATLANTIC MAGAZINE
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The European Parliament Issues FATCA Resolution
EU MEPs seek negotiations on US FATCA Agreement
Members of the European Parliament (MEPs) have backed a resolution detailing the "adverse effects" of the US Foreign Tax Compliance Act (FATCA) on EU Citizens and 'accidental Americans' residing within the European Union.
The resolution, endorsed on July 5th by MEPs, called on the EU "Commission and EU governments to present a joint EU approach to FATCA in order to adequately protect the rights of European citizens and 'accidental Americans'".
The resolution also called on "EU governments to mandate the European Commission to open negotiations with the US on an EU-US FATCA agreement, which should cover the possibility for EU 'accidental Americans' to relinquish their unwanted US citizenship on a no-fees, no-filings, no-penalties basis".
It remains unclear how the European Parliament's latest move on the ongoing issue of FATCA could affect Americans and 'accidental Americans' residing in the United Kingdom ahead of the country's exit from the European Union in March 2019.
Cecilia Wikström, the Chair of the European Parliament’s Petitions Committee, said that "The affected citizens have for too long been neglected by the member states and EU institutions to please the US government. It is therefore high time for the European Commission and the European Council to recognise the problems and start addressing them. As chair of the Petitions Committee, I therefore urge the Commission and the Council to present a joint EU approach to FATCA, and to open negotiations with the US on an EU-US FATCA agreement, ensuring the full reciprocal exchange of information and compliance with relevant EU laws."
More information on the resolution and the European Parliament can be found at www.europarl.europa.eu/news/en/press-room/20180628IPR06837/meps-want-to-open-negotiations-on-an-eu-us-fatca-agreement.
