A Jersey Finance-commissioned report, entitled ‘Jersey’s Value to Europe’, has been published by Capital Economics, and demonstrates the vital contribution the jurisdiction makes to the economies of the European Union. Meanwhile, a separate report, also launched today from Capital Economics and entitled Jersey’s Value to Britain, builds on previous research undertaken in 2013 to outline the current value of Jersey to the UK.
Taken together, they provide a comprehensive summary of Jersey’s total value to the EU, be it in terms of jobs, investment or extra tax income. The reports’ main findings are:
- Jersey is a conduit for €188bn of foreign investment into the European Union (excluding the UK), equivalent to 4% of the bloc’s total net international investment
- That investment supports in the order of 88,000 European jobs, in addition to those created solely in the UK
- Around one third of all fund assets administered and managed in Jersey are located in EU countries other than the UK
- Looking at the UK, Jersey is estimated to be a conduit for almost £500 billion of foreign investment into the country, equivalent to 5% of the total stock of foreign owned assets in the country
- Jersey supports an estimated 250,000 British jobs, of which 190,000 are from foreign investment alone, and adds £14bn to the UK economy
The reports also reinforce how Jersey’s benefit to the UK and the rest of the EU far outweighs any potential costs in terms of foregone tax revenues to the continent.
Geoff Cook, CEO of Jersey Finance, said:
“Jersey has the flexibility and freedom to provide the taxation, regulatory and supervisory regimes required by clients with cross-border asset portfolios. That is why Jersey has become a leading international financial centre. And even though its footprint is nowhere near as large as centres such as Luxembourg and Switzerland, the Island has attracted a mix of skills and financial businesses that account for a quarter of its 59,000 jobs and two-fifths of its economic activity."
Mark Pragnell, Head of Commissioned Projects at Capital Economics, said:
“Jersey is unambiguously European, with unique relationships with the United Kingdom and the rest of the European Union. Jersey’s freedom to legislate and govern, and determine its own taxes, has allowed it to become established as a leading centre for international financial services, one whose expertise benefits all the constituent countries of the EU.”
To read the report, please click here.