A radical change is gradually emerging in the attitude of the European Union towards multinational hi-tech giants. On the one hand, the new approach may be explained by the fact that European politicians have recently become more aware of the public policy implications of new technologies. On (...)
When interest rates on government bonds of struggling countries in the Eurozone rose heavily, up to the summer of 2012, ECB president Mario Draghi announced on 26. July 2012 that “the ECB is ready to do whatever it takes to preserve the euro.” It was the birth of the not yet used OMT program (...)
At the beginning of 2008, Spain experienced an unprecedented bust in the housing market. The bust triggered a banking crisis and a recession. Moreover, Spain has dealt recently with political instability. The results of December 2015 and June 2016 election were inconclusive and only in October (...)
In the last few weeks the British Prime Minister, Theresa May, has revealed plans to reform the UK secondary education. Her proposition sees the reintroduction of the Grammar Schools model - ruled out in 1965 – among the poll of choices for secondary schooling in UK. Beyond this decision lays (...)
The creation of a European Digital Single Market is moving forward, but the risk of regulatory capture is significant and it is undermining the success of the project.
The reduction of roaming costs Consistent with the EU strategy of creating a Digital Single Market, the abolition of (...)
Speculation: Beneficial to the Market Economy
Speculators are currently not very popular. For the globalisation sceptics from Attac speculation is to be blamed for high food prices and famines in third world countries. The German Minister for Economic Affairs, Sigmar Gabriel accuses the (...)
The Italian Prime Minister, Matteo Renzi, has recently announced the intention of the government to invest 13 billion euros to help modernizing Italian manufacturing. Leaving aside reasonable doubts regarding how the government will manage to raise these funds, it appears evident that Mr Renzi (...)
Economic Growth without a Government?
Germany 2005, Belgium 2010-2011, USA 2013, Spain 2016: Even in well established democracies it can happen that governments lose a substantial part of their competencies or have to confine themselves to their representative tasks. There can be various (...)
The EU Commission’s investigation
After a three-year investigation, on the 30th of August 2016 the European Commission has concluded that Ireland should recover up to €13bn (£11bn) from Apple. The Commissioner, Margrethe Vestager, said that Ireland allowed Apple to pay substantially less than (...)
Capitalism and Democracy: A recipe for Wealth and Freedom
Almost 90% of all Germans believe that democracy is the best political system, despite the slight decrease in approval ratings during the past few years. However, only a quarter of the population thinks the same way about capitalism, (...)
Commercial property sector in UK after the Brexit referendum The UK’s choice to leave the EU triggered great instability on the financial markets resulting in currency value shocks and asset volatility while both businesses and consumers’ confidence fell sharply. Commercial property has been amid (...)
In May 2016, the Ministry for Universities and Science of the UK Government published the white paper “Success as a knowledge-economy”. The explicit intention of the document is to indicate a path of reform for higher education in the country. The proposal argues in favour of a series of (...)
On the 5th of July, just a few days after the UK expressed its intention to regain trade negotiation autonomy with the Brexit referendum, the EU has found itself in a pivotal position. It had to take an important decision regarding the nature of the Comprehensive Economic and (...)
Something is rotten in Italy, namely Italian bank loans amounting to € 360 billion. For around one out of five loans payback is doubtful. Such an imbalance in the Italian banking sector is a reminder of the financial crisis in 2008. In response to the crisis the European Single Resolution (...)
During the next months the Olympic Games will take place in Brazil. As was already the case during the Football World Championships 2014, we will see many reports about the widespread corruption in this country. Unfortunately, far less attention will be paid to how underdeveloped economic (...)
A difficult economic scenario
The Serbian economy needs a shock to take a path of recovery based on growth and modernization. The IMF recently argued that even if the country “continued to make important progress in fiscal consolidation… important challenges remain to ensure a durable fiscal (...)
Our latest Policy Paper is now available.
Taxing corporations: why it is not only bad, but unjust by Pierre Bessard and Fabio Cappelletti (Liberal Institute, Geneva, Switzerland).
Some figures on the sharing economy
The sharing economy is a market system that requires peer-to-peer-based sharing of access to goods and services. The sharing is possible thanks to the use of digital platforms that allow peer-to peer transactions. The phenomenon (gross revenues were (...)
On Monday the 6th of June 2016 an IREF workshop in cooperation with St. Mary’s University took place in London. International academic presenters gave talks on their recent research articles, providing stimulating and interesting insights on issues that are at the centre of the IREF proposals. (...)
The BBC Charter
The British Broadcasting Corporation, BBC, is the oldest and largest broadcasting corporation in the world. It is funded (partially) by annual licence fees charged to all households possessing any type of equipment to receive TV broadcasts. BBC shows, documentaries and TV (...)
In recent years, the Welfare System in the UK has undergone radical changes beginning with the design and implementation by the Government of the Universal Credit, a single payment streamlining six in-work benefits (including Jobseeker’s Allowance; Housing Benefit; Working Tax Credit; Child Tax (...)
In less than a month, UK voters will be asked to express their intention to leave the EU in a referendum. The UK Prime Minister David Cameroon has strongly argued in favour of staying. However there is disagreement among Conservative MPs, and a few Ministers of his Government have spoken in (...)
2016 is going to be a crucial year for Royal Mail, RM, the 500 year old British postal operator whose privatization process (started in October 2013) was finally completed in October 2015. In a broad sense, it is a decisive time for the entire sector of delivery services in Great Britain. The (...)
Back in 2014, several European countries started including the revenues from drugs and prostitution into their national accounting systems. These two sectors have several characteristics in common. First, the consumption of drugs and paid sex is usually considered an immoral activity from a (...)
An historic decentralization deal in England
There is historically in England a North/South division. In the South, trade and financial services have made London the target of international investments and the principal source of economic growth in the country. In the North, there is no city (...)
Addictive Manufacturing (AM) is the name adopted in industries whose production is defined by the use of large scale 3D printing techniques. 3D printing is a technology which builds three-dimensional objects from a digital prototype. Today AM represents the foremost level of digitalisation in (...)
A deteriorated banking sector in a worn-out economy At the beginning of 2016, in the context of the new EU legislation on “bail in”, Italy found itself unprepared to face the emerging crisis of its credit system, mainly caused by two correlated elements: 1. a banking sector weakened by a large (...)
How is NHS coping with winter?
Winter is historically, and not surprisingly, a very challenging time for the UK National Health System, NHS, due to lower temperatures and the spread of viral infections. Winter 2015/2016 seems to be particularly bad and the system is showing clear signs of a (...)
Net neutrality: what is the debate about?
The Internet has probably been the fastest developing industry of the last two decades, leading it to become a necessary instrument in our daily life and a possible engine of economic growth. In this context, the net neutrality principle broadly says (...)
The UK labour market at the beginning of 2016 is in a rather good shape. The rate of unemployment has decreased steadily in the last two years and is now approaching pre-crisis figures. Employment at 73.9% is reaching also record levels.
Presenting the summer budget, George Osborne, the (...)
The Nobel-Laureate Douglass North passed away at the end of November. Though he didn’t specialise in fiscal questions, his analysis of institutions in early modern Europe reveals that actual fiscal choices about how to finance an army help to determine the fortunes and falls of European powers. (...)
Switzerland may be known for low taxes, but that does not prevent it from redistributing them; richer regions subsidise the poorer ones. Now at least one paying canton is starting to protest against the arrangement. There really is a big difference between how much taxpayers in different (...)
The UK government has been watching Jamie Oliver’s TV shows and now wants to implement his plans for a new tax on sugar. The Commons‘ Health Committee has reported its overwhelming support for the idea at the end of November. Other than arguments that such taxes are “good per se“ because they will (...)
At the beginning of October, England became the last constituent part of the United Kingdom to introduce a compulsory charge for plastic shopping bags (to be paid by the shopper), after similar taxes had been introduced in Scotland, Wales and Northern Ireland in previous years. The relevant (...)
A successful integration of asylum migrants arriving in Europe will largely depend on their success on the European labour arket. In a new Policy Paper we investigate the labour market barriers faced by asylum migrants in Germany, France and the UK. We recommend a full elimination of barriers (...)
Strange behaviours are often caused by strange taxes or subsidies. The strange behaviour of Volkswagen believing it could cheat and not get found out was motivated partly by the strange tax/subsidy policies in Europe which subsidised diesel at the cost of petrol (...)
In an alarming trend, individuals, companies and institutions that have committed no crime are increasingly finding themselves subject to public witch-hunts on ill-defined ‘ethics’ charges. The practice is gaining traction in several countries, though it remains unclear who has the authority to (...)
Two routes exist in theory towards making people behave more environmentally: through taxation, and through better defining and upholding of property rights. Empirical evidence suggests that at least in the EU, environmental taxation does not seem to work. Greater reliance on property rights (...)
An essential component of a free society is independent press. It plays a central role in preventing both state actors and private interest groups from pursuing their own interests through state power too aggressively. Journalists independent from political and economic power work effectively (...)
The best way how rich countries can help the poorer ones has always been to teach them how to fish. Not giving them fish. And certainly not taking fish away from them.
Yet this is what the EU has been doing since the 1970s, and in September it has renewed three multi-year greatly underpriced (...)
Germany Income per capita is not only high in Germany, it is also relatively equally distributed in the population. OECD data indicate that only a few small countries have income both higher and more equally distributed than Germany. In other large European countries like France, UK, Italy or (...)
"Fair tax(es)" is a beautiful idea everybody wants to subscribe to. Including, of course, modern EU politicians. Their idea of "fair tax", however, differs very much from the way in which people understood the concept in the past.
It is no longer about making sure the tax is fair to the (...)
It is good when foreigners buy agricultural land. Johnny Foreigner will have evidentnly paid more than anyone else, and he can bring access to better capital, technology, know-how or marketing channels. That’s what the single market is for.
Yet governments fear him and legalise against him - (...)
A new study from a German economics institute claims that the German state has already made €100bn from the Greek crisis as lenders flee from Greece into the safe haven of German government bonds, reducing their interest rate and saving the German government money on debt interest payments. (...)
Each employed Slovak worker will pay about a week’s take-home pay in extra taxes so that their government can bribe Jaguar into creating a few jobs located in Slovakia (for a while). We present lessons this teaches us, one for each day of such (...)
Economists are often accused (especially by other disciplines) of exaggerating the virtues of the market and of systematically downplaying the chances of a successful government intervention. In this view, economists are "market believers" and “state sceptics”, which is then reflected not only in (...)
The imagination of EU governments to come up with new kinds of tax is apparently inexhaustible. Tax on meat is now being prepared, as an answer to alleged “problems” with meat production and consumption. But taxes are generally bad solutions to “problems”, especially when those problems are created (...)
It’s not just USA who is raising minimum wages significantly. New or increased minimum wages are spreading all across the EU, too (e.g. Germany, UK, Portugal..). If we take McDonald’s as a symbol of "minimum wage jobs", which governments are working the hardest to deprive such workers of any job (...)
If it wasn’t obvious already, Greeks do their taxes differently.. They rely more than is customary in OECD on the less visible taxes of VAT and Social Security. Income tax revenue (from people and companies) is much less prominent. If they are risking a lot less, it time to try to actually lower (...)
New retail tax in Hungary discriminates big business, which just happens to coincide with the finance minister’s nationalistic interest. New retail tax in Czechia favours big business, which just happens to coincide with the finance minister’s business interest. Curious thing, (...)0 | 50 | 100 | 150 | 200 | 250 | 300