The ECB’s aggressive interest rate hike is causing problems for everyone in Europe. To citizens who are asked to pay a higher installment on their mortgage or consumer loan, to businesses that are raising the cost of servicing their loans, to states that see their existing bonds collapse, and even to public debt that, instead …
Category: Proposed Fiscal Policies
fiscal analysis
Why the EU’s Proposal to Impose a Cap Only on Russian Natural Gas is Wrong?
In the past two weeks the structural pathologies responsible for the EU’s energy gridlock have combined with a series of extreme weather events – such as unprecedented drought – to record unimaginable energy prices. The day-ahead electricity prices in France, the EU’s traditional electricity exporting power, reached on September 2 even above 1,000€/MWh, while natural …
Big Problems for the European Economy
The development of the war in Ukraine leaves no room for optimism for the European economy. It is clear that the longer the war lasts, the greater its economic impact. At the moment we have the terrible accuracy that comes from inflation, which in turn is due in large part to the energy crisis intensifying …
New Challenges for EU Member-Countries Economies
The war in Ukraine has entered a new phase and according to the estimates of the Americans, who have shown that they correctly record and interpret the movements of the Russians, it is going to be quite long. The Russian war machine proves to be inferior to its reputation. A month of hostilities has been …
Using Inflation as a Tool to Improve the Competitiveness of an Economy
An Εurozone/EU member-country’s economic policy can use inflation as an opportunity to achieve two goals: First, to increase the competitiveness of the economy and therefore its employment and growth rate. Second, to reduce the Public Debt-to-GDP ratio. Combining the above, with the imposed need to relieve as much as possible the citizens, especially the weaker …
Industry and Tax sector
A developing country that wants to continue to provide its citizens and businesses, respectively, with opportunities to expand their digital services and platforms, must continually create easy-to-use tools and platforms and push more citizens and businesses to adopt intact digital way of fulfilling their tax obligations. A typical example of such a service is the …
Development Tips for Developing Economies
A grid of six central policies to improve both the productive activity of enterprises and the institutional framework that defines the underlying economic functions could be as follows: 1. Reduction of frictions from taxes and labor contributions, e.g. reduction of insurance contributions, solidarity contributions, income integration in a single tax scale, etc. 2. Implementation of …
Boosting Inflation in the EU is Accelerating the Implementation of New Fiscal and Monetary Policies
Both the ECB and especially the governments of the EU member states must deal with two serious issues after the further strengthening of inflation in the Eurozone. The pressure that is already being exerted and will continue to be exerted most strongly on the actual disposable income of households. In weakening the competitiveness of companies …
Why China Has a Difficulty Getting Rid of Coal
2020 was a milestone in increasing energy production in China. China has commissioned new lignite plants that produce a total of about 38.4GW of electricity. China is the country that builds factories to increase the use of lignite for electricity generation while at the same time as a country invests most of the capital in …
Eurozone Economy Returns to Strong Growth Trajectory but Still Has Obstacles to Overcome
The increased spending of European consumers by the increased liquidity that had accumulated due to the continuous economic shutdowns and lockdowns, gave a dynamic impetus to the field of retail, catering, and steadily increased factory production which has not yet reached pre-pandemic levels. As a result of these factors, Eurostat released data on Eurozone GDP, …
