Volltext: Solving cooperation problems over international taxation: power, legitimacy and sovereignty

to enact change in European states and f orced them into tax cooperation (Hakel- 
berg 2015; Helleiner 2002). It also serves to show the extraordinarily wide d iscre- 
tion of prosecutors in the US legal system to e xtend their jurisdiction extraterrito- 
rially. While the academic literature on extraterritoriality is relatively new, it is an 
important means by which powerful states a ssert c ontrol over economic a ctivity 
that has escaped their national regulatory regimes. To our knowledge this is the 
first paper to examine how extraterritoriality was used to force one sovereign state 
to change its regulations despite sta unch opposition, although paper three c ontin- 
ues this theme. 
Specifically, international banks have a structural economic dependence on US 
markets and the US dollar, which enables US author iti es to re-embed international 
finance by extending the boundaries of US regulatory bodies’ j ur isdic tion and in- 
fringe on the sovereignty of other states. In this way, powerful sta tes play a central 
role in global governance (Krasner 1976; Drezner 2007) and paper two highlights 
that instea d of undermining their state capacity as predicted by global iza tion schol- 
ars (Strange 1996) , growing economic interdependence may actually endow the 
most powerful stat es with additional means of exercising power on less powerful 
We show that after several decades of successful Swiss resistance and multiple 
failed US attempts at influencing its secrecy regulations starting in the 1920s , the 
US managed to overcom e the limitations of sovereignty and forced Switzerland to 
soften its regulations. We argue that in the conflict over banking secrecy, the key 
agents of change were US law enforcement authorities who managed to coerce the 
transformation of Swiss financial practices and regulations agai nst the will of Swit- 
zerland’s governm ent and financial sector. Specifically, they were forced to com- 
ply with FATCA or else lose US market access, which would have had dire con- 


Sehr geehrte Benutzerin, sehr geehrter Benutzer,

aufgrund der aktuellen Entwicklungen in der Webtechnologie, die im Goobi viewer verwendet wird, unterstützt die Software den von Ihnen verwendeten Browser nicht mehr.

Bitte benutzen Sie einen der folgenden Browser, um diese Seite korrekt darstellen zu können.

Vielen Dank für Ihr Verständnis.