HOW THE EUROPEAN UNION THREATENS THE CHANNEL ISLANDS

Dateline: 2nd May 2002

In the present conflict between Jersey and the British Chancellor of the Exchequer we can see not so much British socialist politics as European Union power politics.

For many years sundry agents of the European Union have traveled non-EU countries and threatened them that they would suffer if they did not join or kow-tow to the EU. A European Commissioner went to Eastern European countries and threatened that if they did not apply to join they would not be able to trade freely and even that they would not become members of NATO. Recently a Conservative Party MEP threatened Malta that they would be cast into "outer darkness" if they did not join!

What is so interesting about the EU demand that Jersey should open up its financial system to scrutiny (and thereby expose itself to unfair competition from other countries like Luxembourg) is how respectable in fact so-called "tax havens" are compared to the so called non tax havens. According to the US Government agencies looking into money laundering (the Financial Action Task Force, the CIA Money Laundering Centre and the State Department) "non tax havens" like the UK, Germany, Belgium, Ireland and others are twice as likely to promote money laundering than so called tax havens like Jersey.

Most of the money in tax havens is in fact institutional investment by institutions which are given considerable tax advantages by e.g. the British and German governments! The IMF recently announced it wants to help a certain country upgrade its anti-money laundering laws. The country concerned? The USA!

In a recent self-assessment survey the US Financial Action Task Force failed its own country, Canada, Japan and Mexico in an analysis of anti-money laundering measures. On the other hand the US Internal Revenue Service has granted the Channel Islands a clean status. The reason why Jersey is threatened by the European Union through Gordon Brown has nothing to do with decent financial standards but has everything to do with the worst kind of power politics.