By Jonathan Davies

A deal between the EU and Switzerland to end banking secrecy is "another blow against tax evaders", according to an EU commissioner.

An agreement between the two parties, signed today (Wednesday), will prevent EU residents from hiding undeclared income in Swiss banks from 2018.

Switzerland has long been known and considered as a haven for tax evaders and avoiders. Similar deals are currently being negotiated with Monaco, Andorra and Liechtenstein.

"This new transparency should not only improve member states' ability to track down and tackle tax evaders, but it should also act as a deterrent against hiding income and assets abroad to evade taxes" the EU Commission said.