Previous tax cuts released 1% of GDP worth value to taxpayers’ pockets, followed by ongoing red tape cuts and market deregulations. These moderately intensive reform trends have created a methodologically based contribution for slight increase of economic freedom.
People can be nudged in a certain direction without the government introducing public policies or implementing high taxes. As any changes in default options, framing or social influences may have a great impact on the choices people make, public policy creators use insights from psychology to create nudges.
Croatia is currently 61% economically free. There is no country with more than 90%. Therefore, Croatia’s competitive gap is much more than 39% deficit in economic freedom. Croatia’s challenge is to compete with much better countries of Central Eastern Europe.
Sometimes, we see Croatia only as a big beach resort. But the newest EU member is concerned about non-vacation topics like the economic crisis as well. The country’s economy hasn’t grown since 2008, the unemployment rate is approaching 20% and the debt is rising sharply.
Billions of euros are flying around Europe also this year, and an attentive observer should not miss from whom and to whom they are wandering. Especially, when the bets of Slovak taxpayers are also in play.