The French presidency of the European Union, due to begin on 1st
July, and lasting six months, is shaping up to be an exciting
time for Europe's offshore financial centres.
Ever since Colbert,
the French have been Europe's natural centralisers, harmonisers
and levellers, and this tendency is specially marked under a socialist
government. What Napoleon couldn't achieve by force of arms, his
successors have now almost achieved by political dexterity. Who
would ever have believed that the British would buy their beef
in kilos, boned or otherwise?
Last week Lionel
Jospin trailed some of his government's priorities for the French
presidency, saying that they would press fellow EU governments
to advance the battle against money laundering, and would also
try to make progress with tax harmonisation.
But the true voice
of French dirigisme was heard more clearly in Madrid on Thursday
when Arnaud Montebourg, a left-wing deputy from Burgundy (once
English territory during another, failed attempt at European harmonisation)
set out a scarifying vision of his party's agenda for the presidency.
M Montebourg, who
is president of a parliamentary enquiry into money laundering,
said that member states would be asked to agree to a series of
repressive measures, including sanctions, against the worst offenders;
and he gave a list, which included Luxembourg (a founder member
of the EU), Monaco, Andorra, Jersey, Gibraltar and Liechtenstein
(not in the EU at all).
In Jersey, Senator
Frank Walker, president of the island's finance and economics
committee, said that Montebourg was indulging in political posturing.
Senator Walker said that in the previous week, a delegation from
France's Trackfin agency, a criminal intelligence service, had
congratulated the island's government on its anti-money laundering
procedures. He pointed out that Jersey's income tax rate, at 20%,
was higher than Ireland's 12.5% rate which would shortly come
into effect.
No doubt Deputy Montebourg
was indeed making a political statement, even if it's rather crass
of him to do it while in the chair of a parliamentary enquiry;
but there can be no doubt about the strength of egalitarian feeling
among many left-leaning politicians and legislators in France.
Allied to the visceral 'anti anglo saxon' attitude which drives
French politicians of all persuasions, the result can sometimes
come uncomfortably close to anti-capitalism in the minds of some
socialists. Still, it is one thing for this dangerous cocktail
to bubble away in Paris - it is a long way to Brussels, and even
further to unanimity among the 15 member states, which would be
required before any action could be taken against the offshore
centres. Still, it should be a lively autumn.