In a statement, the Norden group, which includes the governments of Denmark, Iceland, Finland, Norway and Sweden, observed that ongoing regional and global integration has created an international financial system virtually without border controls, and to be able to enforce various domestic laws, countries are today dependent on other countries’ willingness to share information.

"This is particularly true in the tax area," the statement said. "Unless an increasing number of countries begin to cooperate in sharing tax information, non-compliance with national tax laws will soon become an urgent global problem. It is therefore critical that all countries work towards establishing an international financial system which is based on transparency and effective exchange of information in tax matters."

The Nordic countries started joint Nordic negotiations in July 2006 to conclude tax information exchange arrangements with jurisdictions that have made a commitment to apply the OECD standards on transparency and exchange of information in the tax area.

The Nordic Finance Ministers said they welcomed "substantial progress" made in the ongoing negotiations with Aruba, Isle of Man, Jersey and the Netherlands Antilles. Other negotiations are shortly due to commence with Bermuda, British Virgin Islands, Cayman Islands and Guernsey.

The Nordic countries said that they aim to conclude a large number of tax information exchange arrangements within the next few years. Most jurisdictions contacted by the Nordic countries have "reacted positively" to concluding such arrangements, the statement noted.

However, the ministers concluded that "in order not to disadvantage the jurisdictions that participate in the global efforts to combat international tax evasion, the Nordic Finance Ministers agree that at some stage they will have to consider possible defensive measures against un-cooperative jurisdictions".

The Nordic Council was formed in 1952 and is the forum for Nordic parliamentary co-operation. The Council has 87 members, representing the five countries and three autonomous territories - Faroe Islands, Greenland and Aland. The Nordic Council of Ministers, formed in 1971, is the forum for Nordic governmental co-operation.