Swiss economic success: diversity as capital
Nothing seems to stop the prosperity of the Swiss economy. Its steady growth is seemingly impervious to the political turmoil in the EU, superpower tensions, the vagaries of world trade and even the overly muscular Swiss franc. Switzerland’s highly diverse economy and its unique political system together form an ecosystem that is amazingly productive and resilient. The question, however, is how long the Swiss can manage to shield their order from the globalized world’s homogenizing pressure.
Educational meritocracy and East Asia’s development miracle
Only a few countries made the leap from developing to advanced industrial nations in the 20th century. Among the fortunate five, four are from East Asia: Japan, Singapore, South Korea and Taiwan. Their politics and economic policies have varied widely over the decades, but at least one common denominator stands out: a rigorous early selection process for their political and business elites based on academic achievement.
An offense to common sense and EU principles
The EU’s international trucking business, now dominated by highly competitive companies in Central Europe, can be disrupted by Brussels’ ham-handed attempt to shield cargo movers in countries with high minimum wages. The issue has political ramifications for the EU as well.
‘Overbanking’ in Europe
While American banks recovered from the 2008 financial crisis, lenders in Europe have languished. Contrasting regulatory approaches and economic environments account for some of the differences, but European banking authorities have their own explanation: “overbanking.” Their reasoning is odd, not least because the European Union’s banking sector is shrinking.
The benefits of global tax games
The growth of global trade and rise of more sophisticated financial products from the late 1970s has encouraged in tax arbitrage by multinational firms and tax competition between governments. This phenomenon has become a fixation of global governance do-gooders and bureaucrats. Their seemingly innocuous push for international tax coordination and transparency, however, will have costs that are hard to measure.
A Europe of regions will be essential for the union’s future
At this historic juncture, leaders of the European Union should awaken to the fact that Europe’s strength has always been its common cultural heritage and its diversity. The way out of the EU’s current bind is through expanding regional cooperation and replacing centralistic, market-strangling regulations with robust, friendly competition.
EU faces dilemmas over Hungary’s nuclear deal with Russia
Hungary is officially upbeat about its agreement with Russia to expand the Paks-2 nuclear plant. But behind the hurrah-optimism of Prime Minister Viktor Orban and government officials, the 12 billion euro contract with Rosatom is encountering stiff resistance at home and abroad, writes GIS guest expert Peter Juhasz. Summary ...
EU regulators target transfer pricing but real aim may be fiscal control
The European Commission’s crackdown last month on tax privileges for multinational corporations could be part of a bigger power play. The stakes could be much higher than preserving the autonomy of national tax authorities. Summary <i>European Union Competition Commissioner Margrethe Vestager is demanding...
Imagining the EU without the UK
With eyes fixed on Greece, Europe’s politicians and media are ignoring a weighter economic and geopolitical threat - ‘Brexit’. The United Kingdom is the European Union’s second-largest economy and a military and political heavyweight; it is also the world’s oldest parliamentary democracy and an ardent promoter of free markets and decentralisation. What would the EU...