Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
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Europe is heading back into recession

According to a recent economic outlook from Standard&Poor’s, high frequency indicators in the past month continue to depict Europe’s “darkening economic landscape”. Apart from being a problem by itself, a recession is going to aggravate the debt crisis. Indeed, most of the EU member states’ governments have built their deficit forecast on the basis of a forecasted economic growth. A negative GDP growth will therefore increase the already frightening gap between state expenses and revenues.

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