The financial crisis has been with us for six years and counting. The symptoms don’t change – growing unemployment, low or even stifled economic growth, the same ineffective measures adopted by governments and central banks.
Compared to the previous year, tax burden was on the rise – the average European employee pays more than 45% of income in taxes.
Does Europe remain focused on austerity and structural changes as its preferred strategy to deal with crisis? Most likely not.
International Monetary Fund head Christine Lagarde said the U.S. government’s debt reduction plans are too abrupt, which could cause the U.S. economy to contract by over one and a half per cent.
In Nicosia, people with banners saying “Merkel and Schaeuble go home”, protested against EU imposed rule of taxing their bank savings.
In recent months, economic confidence has worsened and unemployment has risen over 12 percent across the currency zone. But the real problem is youth unemployment.
While German pensioners in retirement received on average 58% of their salary, Italians received 76%, Spaniards 84%, and Greek pensioners – 110%, more than their previous salary.
How long will the Euro last? Up to 5 years; it is not my opinion but senior German government advisor´s.
This week, the issue of financial transaction tax stirred the water again. Just a reminder, this tax (called Tobin’s tax) is planned in 11 EU countries, including Slovakia.
The engine of Europe – Germany – will not save anybody if economy is weak. German imports and exports fell sharply in February for the third time in the last four months, which indicates some problems.