The document designed to restrain fiscal abuses of the past that contributed to the flaring up of the sovereign debt crisis in the euro area “periphery” in 2010-2012 remains little more than a paper promise: Europe’s public debts continue to climb and the hopes of sustained and real reforms of the fiscal space are fading.
Cayman has taken just such a permissive approach to certain forms of financial regulation and has reaped the benefits. Extending that approach into other areas might well enable the island to become a hub for other entrepreneurial activities, to the benefit of islanders and to the world.
From a financial perspective, many consider that when money goes offshore, it enters a black hole. Bank secrecy, public corruption and the constant barrage of films and books which put the offshore in a bad light contribute to this image.
It is fortunate that Mark Carney, who moves from the governorship of the Bank of Canada to that of the Bank of England in July 2013, is no stranger to political minefields.