Reports

The ‘Great Reset’: Prospects and risks
The “Great Reset,” a blueprint of wide-ranging changes meant to lead to a greener and fairer society, is gaining momentum. It proposes an ambitious redesign of today’s economic system, in which civil society would hold the business sector accountable. However, to accomplish such aims would require several policies that could ...


New Opportunities 2021: Fiscal policy for the recovery
Governments have responded to the pandemic by implementing safety-net programs to support businesses and workers during lockdowns, leading to elevated deficits and rising debt levels. Many states will soon need to face the aftermath of these decisions, but not all fiscal responses are created equal. Countries that favor spending cuts ...


Higher digital taxes coming soon: A three-part saga
Global policy around digital taxation is headed toward higher and more complicated taxes. The OECD’s latest proposed framework would add a new set of complex regulations to the existing system. Meanwhile, several countries are unilaterally implementing their own digital services tax, which they may refuse to repeal even after the ...


Scary EU policies: Broken rules and opportunistic socialism
With the Covid-19 crisis bearing down on eurozone economies, all efforts at maintaining fiscal responsibility have been abandoned. The euro area could adopt new fiscal rules – likely ones that would allow for more profligacy and greater centralization. But the ultra-low interest rates that come with such a strategy could ...


The U.S. mulls more Covid-19 bailouts for states
As parts of the U.S. government wrangle over another round of Covid-19 relief, one of the thorniest issues is whether to offer more aid to states and local governments. What has become clear, however, is that the funds already doled out should have easily covered the shortfalls in tax revenue ...


A Swiss answer to the Covid-19 crisis: Focus on liquidity
Switzerland devised an ingenious way to throw a lifeline to its enterprises during the pandemic-induced crisis. Its “liquidity facility” targets the core segment of the economy, relies on business owners’ sense of responsibility and does not burden the country’s public finances with intolerable debt.


France’s bureaucratic challenge
France is the poster child for rule by the bureaucracy. It has become so powerful and entrenched, that even attempts to rein it in have ended up enlarging it and giving it more power. Now, the Covid-19 crisis has revealed some major faults, offering an opportunity for serious readjustment. But ...


Relevance beyond the crisis: Fiscal policy’s moment
The Covid-induced economic crisis has led policymakers to put in place large fiscal rescue packages including new spending, tax cuts and subsidies. Governments will now be tempted to spend more to boost the recovery. Soon, however, countries will have to pay for the debts they have rung up. Those that ...


Policy cures worse than the disease
Governments first failed to respond to the COVID-19 pandemic. When they finally realized the scope of the challenge, most resorted to misguided, self-serving and often disastrous policy responses. Their push for centralization and control of economies, companies and ultimately, individuals, bodes ill for the future.


Opinion: The OECD heads down the wrong path
When it was first founded, the OECD’s mission was to support economic growth. It promoted free trade, low taxes and economic freedom. But over the last three decades, it has strayed from its original goals. It now focuses on expanding the reach of its member governments, especially when it comes ...


Sound business is key, not centralist ambitions
French President Emmanuel Macron’s call for more “solidarity” among eurozone states may have a nice ring in today’s harsh pandemic times. It is, however, a disguised attempt to make the enterprising and frugal European states pick up the tab for the irresponsible ones. Instead of a “transfer union,” France and ...


Relevance beyond the crisis: Germany’s ‘fat years’ are over
Over the past decade, Germany has worked hard to keep its public finances sound, lowering its debt levels and recording budget surpluses. Though the coronavirus crisis will undoubtedly change that state of affairs, the country's previous fiscal responsibility gives it more room to maneuver than most of its peers. The ...


GIS Dossier: Socialism
Inequality, social injustice, economic downturns – lately the blame for such phenomena is laid at the feet of capitalism. Increasingly, and especially among the younger generation, socialism is touted as the cure for all these ills. Yet over and over, history has taught us that government meddling in the economy ...


Britain will thrive after Brexit only if it dares to reform
Leaving the high-cost, bureaucratized European Union is not enough for the UK to unleash its entrepreneur potential, boost its share in global trade and return to high growth. To bring benefits, Brexit would need to be followed by bold liberal reforms: cutting taxes, rolling back government spending and reducing excessive, ...


Opinion: Harmful attempts to plan and regulate the global economy
Governments’ tendency to overtax the economy, overregulate it and misallocate resources by subsidizing losers, has been hurting economic growth, innovation and competitiveness in many parts of the world, including Europe. Now, officials are discussing novel ways to introduce such disastrous practices on the global level. Their excuse is an alleged ...


Japan opts for another round of fiscal stimulus
Japan is looking for ways to reduce its public debt, currently worth more than 200 percent of its GDP. Prime Minister Shinzo Abe has managed to raise the consumption tax, but the government’s budget for this year still relies on social programs to alleviate demographic limitations and convince consumers to ...


Hidden agenda behind the Global Asset Registry project
A global asset registry (GAR) project aims to pinpoint the true owners – past, present and future – of all types of wealth now shielded from tax officials in safe havens across the globe. The project appears to be technically feasible. It is pursued by a group of tax specialists ...


Modern Monetary Theory: The future of money?
Modern Monetary Theory (MMT) has become a popular philosophy among those who would have the government spend more. Traditional economics holds that MMT would lead to inflation, yet its proponents argue that the orthodoxy no longer applies. Though attractive for many across the political spectrum, it stems from some basic ...


Taxing the digital economy
An ongoing international effort to rewrite the global tax rules for the digital economy would be a dramatic shift with potentially damaging consequences. Fear of countries unilaterally levying their own digital taxes has led to an alternative at the OECD, motivated by both fiscal and political factors. The new proposal would ...


Focus Germany: Taxing climate subsidy, subsidizing climate tax
Germany is struggling to achieve its current environmental goals. A new policy package under consideration now is unlikely to provide a clear path forward. The taxes and subsidies it foresees contradict each other and could ultimately impede technological advancement. The proposal has proven disappointing to climate activists and economic critics ...


Opinion: European airlines set to lose competitiveness under new rules
European Commission President-elect Ursula von der Leyen has made it clear that she intends to create a level playing field for EU airlines. However, the legislative package currently being discussed contains measures that would have the opposite effect. Taxes on kerosene could hobble EU aviation companies by putting them at ...


Looking for the best tax code
Ballooning modern governments collect an increasing proportion of their countries’ output in taxes, which spreads inefficiency and economic stagnation. The drivers of this process can be neutralized, and the economy-distorting impact of taxation mitigated, with better tax-system design. Among OECD member states, there are examples of sound solutions to emulate.


Prospects for Latin American economies in 2019
Latin America’s diverse economies are facing a series of common problems in 2019. After a years-long commodities boom, countries that failed to prepare for the current downturn in prices now deal with a loss of revenues and foreign investment. Corruption and quality of life issues have presented other challenges, and ...


Namibia faces political and economic uncertainty
Namibia has been hailed as a success story of democratic transition in Africa, enjoying relative stability and economic growth for years. But after general elections this November, the country may face a turning point. Growth has stagnated, and political polarization has weakened the ruling SWAPO party. Even if he holds ...
