EU referendum result could have future impact on the island, says chief minister

HOW much control over financial services and employment the UK can claim back from the EU will be a key factor in its 'in or out' vote, legal advisors have said.

It follows the announcement from prime minister David Cameron that the UK will hold a referendum on its future in the EU by 2018, which Guernsey chief minister Peter Harwood, pictured, confirmed could have an impact on the island.

Collas Crill partner Ian Kirk said that, as there would not be a referendum until 2018, there was a 'lot of water to flow under the bridge' until then.

'The big question is how much, if any, can the UK government claw back from the EU's central control, particularly in the area of financial services and employment flexibility because this will be an important factor in determining an "in or out" vote,' he said.