Graham Mather, who used to sit as a Conservative in Brussels, believes European tax harmonisation rules could signal the end of Jersey's position in the world of business and finance.

He said: "The lesson for Jersey and the British dependent territories is to make sure that they are in touch with Europe.

"You can still be off-shore, you can still be not part of the European Union, but I think it is wise to keep an eye on what they are doing because Europe is closer than we might have thought."

Mr Mather is urging like-minded islanders to campaign against the UK's continued membership of the European Union and any campaign to introduce the euro in Britain.