competitiveness

By a narrow vote, the European Parliament has effectively blocked the entry into force of the partnership agreement with Mercosur. This is yet another failure by the EU to improve its prospects for prosperity and economic transformation. The agreement that was signed is a step in the right direction, but delaying it means accumulating lost benefits—at a time when growth in the core of the euro area is dangerously close to zero.

One of our authors, Martin Vlachynsky, participated in an episode of In Conversation With, where he spoke with Adam Bartha, Director of Epicenter Network.

When the United States struggled with a recession in the early 1990s, James Carville, who was an adviser to Bill Clinton during the presidential campaign, coined a slogan that for decades became a hallmark of neoliberal thinking (or even a neoliberal worldview). The economy, stupid! was quoted in virtually every language, tailored to the circumstances of a given country, company, or even private matters.

I recently attended a discussion on Europe’s competitiveness. There was unanimous agreement that we are lagging behind in all applied technologies—perhaps with the sole exception of the pharmaceutical industry. The reflexive response from the participants was: “We’ve created a fund for that.” Too few startups? Create a startup fund.Weak AI performance? An AI innovation fund!

The European Union is debating a directive that would place a minimum effective corporate income tax (CIT) of 15 percent on large-scale company groups. The directive is expected to address tax challenges caused by digitalization.

Lithuania ranks 6th in the 2021 International Tax Competitiveness Index presented by the US-based Tax Foundation. Estonia maintains the top ranking and the neighboring Latvia comes second, followed by New Zealand, Switzerland and Luxembourg.

Lithuania’s tax system is ranked the sixth most competitive and neutral in the OECD according to the Tax Foundation’s International Tax Competitiveness Index 2020 which was released on October 15.

The Slovak government’s intention is to lower the market power of large international retail chains. Unfortunately, the alleged problems are mostly made-up. Instead, the \"retail chain tax\" may end up raising the food prices and wrecking havoc in Slovak retail.

The competitiveness of a country’s tax system is instrumental in creating a favorable environment for foreign direct investment, stimulating business, and advancing societal well-being. Competition based on endogenous factors should not be perceived as unjust or unnatural.

Do not be fooled by the vast yellow fields of rapeseed in Slovakia. The agricultural sector is a zombie, living on subsidies instead of fresh brains. There are a few exceptions (like the successful tomato growers), but the overall numbers are harsh.