Denmark's Euro Rebuff Could Mean Good News For Jersey Business

Mandy Robinson, Tax-news.com, London

03 October 2000

It is likely that Denmark's decision to stay out of the euro after last week's referendum could stimulate more business into Jersey. This is the message from Andy Hartwill, SG Securities Chief UK Stragetist, who is in the Channel Islands this week speaking to clients of SG Hambros about the possible repercussions of the Danish referendum.

Mr Hartwill explained that the 53 per cent ‘no’ vote was two per cent higher than most predictions and this was such a close result that there is likely to be an immediate response. He commented: 'we think we are close to the top of the UK interest rate cycle, and I think following the vote there will be a delay in convergence plans ... there will be a pushing back of the idea of tax harmonisation, and the sabre-rattling from Europe on tax harmonisation is likely to become a lot quieter.'

He anticipated that there was likely to be strong cash flows and great growth over the next five to ten years because pensions and new savings plans would ease the pressure on governments, with the probable consequence that money flows to funds under management would increase both on and offshore.

The idea that Jersey may profit somewhere down the line from the Danish vote against the euro comes at a time when the Jersey business community appears to be going from strength to strength. This week the Jersey Federation of Small Businesses announced that it expects to receive the support of its UK counterpart. John Emmins, vice-chairman of the UK Federation, said that the agreement between the two ''will ensure co-operation where we have common causes against bureaucracy, legislation and big business.'

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