Germany demands more financial transparency in Liechtenstein

BERLIN, Feb. 20 (Xinhua) -- German Chancellor Angel Merkel demanded on Wednesday more financial transparency in Liechtenstein amid a widening tax-fraud investigation in Europe's largest economy.

After meeting Prime Minister Otmar Hassler of Liechtenstein in Berlin on Wednesday, Merkel told a news conference that she has asked Liechtenstein to provide help in clearing up the cases of tax evasion that have been discovered recently.

Merkel also said Liechtenstein needs to move quickly to negotiate a new antifraud agreement with the European Union, which could bring more openness to Liechtenstein foundations that wealthy Germans use to evade taxes.

German tax authorities are investigating hundreds of wealthy Germans in one of the largest tax investigations in the country's history.

Liechtenstein has sharply criticized Germany's conduct in the tax-fraud investigation that unfolded after Germany's foreign intelligence service reportedly paid an informant more than 7 million U.S. dollars for a DVD that was stolen from a Liechtenstein bank and contains names of many prominent Germans who may be involved in tax fraud.

The probe has led to the resignation of Deutsche Post CEO KlausZumwinkel, who is suspected of tax evasion by investing in foundations in Liechtenstein.