Swiss authorities have issued arrest warrants for three tax inspectors from the German region of North-Rhine Westphalia who were attempting to investigate German tax evaders.

The trio are accused of "economic espionage" for buying confidential data on 1,500 Swiss bank account holders for 2.5 million euros in 2010.

The affair has complicated negotiations on the ratification of a bi-lateral tax agreement, which is supposed to put an end to a longstanding fiscal dispute between the two countries.

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