FRANKFURT/BRUSSELS, Dec 3 (Reuters) - Offshore haven Liechtenstein has agreed a landmark deal with the U.S. to drop bank secrecy in cases of tax evasion and could make similar concessions in the European Union, a diplomat from the Alpine nation said.

Prince Nikolaus, a member of Liechtenstein’s ruling royal family who brokered the deal, told Reuters on Wednesday the tiny principality had agreed a “significant” change to bank secrecy rules that entitles the U.S. to bank account information when probing a tax dodge.

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Original Tax News article

Almost half of the 160 Austrians on trial for hiding funds in Liechtenstein are to be prosecuted.

It still remains to be seen what will happen to the Germans also caught in Lichtenstein. Germany is arming itself for further crackdowns on tax evaders, and is even calling for Switzerland (its main target)to be labeled an uncooperative tax haven by the OECD.