Ethics and governance in the European Financial centers

The BBC published very interesting country profiles.

It explains that Luxembourg's prosperity was formerly based on steel manufacturing. With the decline of that industry, Luxembourg diversified and is now best known for its status as a tax haven and banking centre. But Luxembourg's strict laws on banking secrecy mean the system can be exploited for the purposes of tax evasion and fraud.

The qualification of "tax haven" is used neither for Switzerland nor for the UK. But it is for Liechtenstein .

About Liechtenstein : "Much of its wealth is based on its status as a low tax haven. Around 75,000 companies have their nominal "letter box" offices in Liechtenstein, where business tax rates are very favourable".

About Switzerland : "A landlocked, majestically-scenic country, Switzerland's long-standing neutral status has given it political stability that has helped it become one of the world's wealthiest countries where banking is a key industry."

Royaume-Uni : "The economy - one of the largest in the world - is no longer manufacturing but services-based, with e-commerce of growing significance. The City of London is a global financial centre."


Is the BBC right ?

Probably yes to a certain extend as the UK and Switzerland demonstrate more transparency on their dysfunctions than Luxembourg or Liechtenstein do. Especially the media actually play the role of watchdog and an organisation like Transparency International observes the jurisdiction in the UK and Switzerland.