Taxation: Monaco Question Asked by Baroness Noakes To ask Her Majesty's Government further to the answer by Lord Myners on 25 February (Official Report, House of Lords, col. 1083), why they are supporting a European Commission proposal for an exchange of information agreement with Monaco for tax purposes when the European Commission has no competence in relation to direct taxes. [HL2392] The Financial Services Secretary to the Treasury (Lord Myners) The European Union has no competence to determine rates of direct taxation, which are a matter for member states. The EU shares competence with member states in the area of exchange of information and administrative co-operation for the purpose of combating fraud and protecting the single market against cross-border tax evasion.