Guernsey Action On OECD Praised By Leading Economist

by Jason Gorringe, Tax-News.com, London

14 March 2002

Guernsey's efforts to comply with the Organisation for Economic Cooperation and Development are undoubtedly a step in the right direction, according to a leading economist.

Talking to The Guernsey Press and Star this week, Andy Hartwill, a strategist at private bank SG Hambros, observed that: 'It was a pragmatic decision on Guernsey's part to go as far as it has.'

Jersey and Guernsey both committed to the OECD's 'harmful tax practices' initiative ahead of the February 28 deadline, although the Channel Islands' authorities expressed concerns that there should be a 'level playing field' on the implementation of financial changes, with all OECD members and currently and formerly blacklisted countries obliged to act in unison.

Mr Hartwill also told the Guernsey newspaper that in his opinion, it is becoming increasingly likely that the entry of new Eastern European members to the European Union in 2004 will be preceded by a referendum on the euro in the United Kingdom.

'All the new members will be on a timetable to go into monetary union. A number of factors suggest that there will be a referendum in the UK early next year,' he explained, warning that: 'The traditional 'no' camp may not be as strong as some people may like to think.'

Recommended