As football leagues in Europe draw to a close

30-06-2009

Published: The Gibraltar Magazine

As football leagues in Europe draw to a close, Gibraltar PLC eagerly awaits the possibility of promotion to the OECD’s (Organisation for Economic Co-operation and Development) Premier League or relegated to the stigmatised Tax Haven blacklist.

Gibraltar cannot afford to waste the opportunity of “promotion” and hopefully will be able to sign Tax Information Exchange Agreements with eleven other countries by the stipulated deadline.

The adverse and uncalled for publicity that Gibraltar’s Finance Centre receives is on the whole unwarranted. The consequences, if Gibraltar remains classified as a Tax Haven, are dire and unthinkable. It would feed those with malign intentions over Gibraltar’s prosperity with sufficient argument to lambast Gibraltar in every way, shape or form.

The so called White List will come under scrutiny in due course as further measures will be conjured up in an attempt to curtail the tax advantages offered by International Finance Centres. However, this battle will be fought another day and for now Gibraltar must ensure that it finds its way to the White List by the time the G20 meets next.

There are conflicting views on how long and severe the global recession will be. There are a number of sources that predict that certain countries will emerge from the slowdown earlier than others. Some sources claim the presence of “green shoots” in certain economies. This would be welcome news as it would indicate that these economies are on the road to recovery. However, a clear indication of an economy’s well being is the length of its dole queues. Many countries in and outside Europe are experiencing unemployment levels that have not been seen for a long time. This a tangible indicator by which people can relate to. Its harmful effect is that it dampens consumer confidence and hampers economic growth as it is burden on the public purse.

Fortunately, Gibraltar remains to a large extent unscathed by the economic turmoil experienced elsewhere. The shock waves, or ripples rather, of the global recession have reached Gibraltar’s shores but its effect is barely noticeable. This speaks volumes for the way in which Gibraltar’s economy is diversified and the strength of the pillars of our economy. However, Gibraltar is not immune to external factors and it must remain vigilant to prevent or mitigate any nasty surprises.

On a happier note, it is satisfying and rewarding to see the interest that the UK political parties, across the spectrum, try to charm Gibraltarians for their vote in the forthcoming European elections. Welcome noises have been made in Strasbourg by the outgoing Members of the Euorpean Parliament (MEPs) who have served Gibraltar well. Despite Gibraltar’s size in terms of population, MEPs have shown an interest in the problems faced by Gibraltar and have vigorously addressed these in the different fora available in the European Parliament. A word of thanks goes out to them.

Gibraltar still does not have its own MEP but it is only a question of time before it does. Strenuous efforts and lobbying by the different sectors and groups that make our society are instrumental towards this goal. Non-Gibraltarian MEP’s can defend Gibraltar’s interests well . However, Gibraltar’s success in securing a seat in the European Parliament could send a strong message to the European Community. It could be translated in terms of Gibraltar coming of age and being able to stand alone in a Parliament truly representative of the constituents it claims to represent.

Recessions fade away over time and Gibraltar must ensure it is on the starting line to exploit opportunities when the global economy commence its recovery.

Gibraltar will prevail despite all its challenges. It has survived and prospered for the last three hundred years and will continue to do so.