Compromise Resolution to Gibraltar Passporting Is Hollow Victory
Tax-news.com
16 October 1999

Britain announced this week that the Gibraltar "passporting" issue has been resolved in a compromise deal that includes ‘postboxing’ via London in an attempt to appease dissenting EU member states. However, the resolution of the "passporting" issue is seen as a hollow victory given that the Government was unable to stop Norwich Union, a major UK financial institution, announcing that it would base its international life business in Dublin rather than Gibraltar. The issue of insurance "passporting" was quoted as a major factor by Norwich Union in their decision not to go ahead with plans to develop their Gibraltar office as a base for international life operations. With "passporting" perceived as a major deterrent factor, it remains to be seen whether the compromise solution will deter other companies from following Norwich Union’s lead.

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