Economy

On June 21, BNB announced that it will fulfill its mission at CCB within a month, by July 21. By then it promises that CCB will have either a new ownership structure or a strategic investor, or else be taken by the only state-owned Bulgarian Development Bank (BDB, with about 1% market share).

Here we go again, straight into the old debate as to from what the poor benefit more: growth or redistribution. It has been rekindled by the near simultaneous appearance of two books written by Indian economists.

The EU is no longer the abstraction it was in the beginning of the crisis. For many Europeans the crisis turned the Euro from a convenience into an issue, the Greek – from exotic and hospitable people into lazy parasites, and the English – from key allies into awkward partners.

On June 27, 2014, Petro Poroshenko, newly elected President of Ukraine, will sign the economic part of the Association Agreement with the EU, political part of which was signed in March 2014. Same day Georgia and Moldova will also sign the Association Agreements with the EU.

In Ukraine, the main channel of the impact of remittances on GDP is consumption. The scope of impact depends on two factors - the marginal propensity to save and the propensity to purchase imported goods and services.

During the global financial crisis, public pensions in Lithuania were cut to reduce further strain on the government budget. The Lithuanian government is now considering backpaying these pensions.

The Tax Freedom Day has arrived! The last Tuesday was the first day when people have started to earn on their own and not for the State and needs of public finances.

The rapid economic growth, coupled with the rise of capitalism, is the source of the wealth of our society. However, this fact is often overshadowed by the perpetual discussions about inequality and wealth differences.

Fiscal harmonization is the homogenizing of countries’ tax systems, whether by natural occurrence (through fiscal competition) or political negotiation. But is fiscal harmonization a credible goal, and if so, who would benefit?

Europe is experiencing a boom in the contingent convertible bonds, in the Anglo-Saxon world also dubbed CoCos. These are the bonds which, at a certain point, convert to the shares of the debtor.