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Title: Pressure from the East European member states
Title (other): Tax Burdens, Locational Competition and Reform Requirements within the EU-25
Abstract
The discussion presently taking place in the large eurozone economies about the reform of the social welfare state is dominated by two assertions: Western Europe as an investment location is too expensive due to its high tax burden, and, second, countless jobs are threatened from low-wage competition from the new EU member states. These claims are only partially true. Whereas the overall tax load in France is above the EU-15 average, the German tax load lies in the middle range. In addition, the export of jobs to the new member states has been declining since 2003. The reforms introduced in the EU and Germany subsumed under the headings of the Lisbon Strategy or Agenda 2010 are not solely in response to the EU's eastward expansion. Nonetheless, the EU's enlargement has contributed to an increased willingness to implement reforms and has stimulated, for example, efforts to adapt the structure of tax revenue in an effort to meet global challenges. It is hardly accurate, however, to speak of a «race to the bottom», which has supposedly been touched off by the new member states. What is needed is the elimination of obstacles that hamper investment, growth and employment. [Urheber s. Copyright]
Author: Hishow, Ognian N.
Series Title: SWP Comments ; 24
Publisher: Stiftung Wissenschaft und Politik
Year: 2004
Language: en
Ressource: Einzelne Berichte, Studien
Keyword: EU expansionlow wageeconomic changesocial welfaretax reform
Subject: European Community budget and financial managementEconomic and social developmentMarkets. Competition
Countries Scheme: Europe. General Resources
Online Ressource: vorübergehend nicht erreichbar!
Bitte beachten Sie die urheberrechtlichen Bedingungen der Dokumentenbenutzung / Please observe the copyright when accessing the document | Quelle / Source: Stiftung Wissenschaft und Politik (http://www.swp-berlin.org/)
Title: Institutional change and economic performance in transition economies: the case of Poland
Abstract
Central and East European countries (CEEC) differ significantly with regards to their economic performance despite the fact that external policy prescriptions are very similar in all these countries. Extreme diversity and fragility in the performance of the main economic variables such as GDP growth, unemployment rates, public debt, trade balance and inflation are evident. Moreover, there seems to be no significant convergence on GDP level of the European Union but a considerable divergence among the CEECs and their regions can be observed. This paper argues that the fragility of economic performance is due to a certain level of institutional instability and a lack of consolidating the new institutional arrangements. The behaviour of economic agents is affected not only by formal institutions such as law, new constitutions and organisations, but also by social norms, old values and habits. There has been little consistency between formal and informal institutions since the new institutions were built on the dichotomy between old rules and new formal rules. The inconsistency between both seems to affect economic growth. The paper focuses primarily on Poland as a case study. In Poland, the accession towards the EU and the strong increase in foreign direct investments (FDI) has had a significant impact on growth and trade as well on the institutions of the Polish economy. The paper points out that the Polish economy is affected adversely by such factors as inconsistency between informal rules and new institutional settlement, fragility in the attitudes and behaviour of enterprises and problems of trust between economic agents. The paper consists of two main sections. The first section introduces some basic definitions and a brief overview of the relevant literature. The second section presents a model which shows the dynamic evolution of institutions. [Urheber s. Copyright]
Author: Tridico, Pasquale
Series Title: SEI working paper; 74
Publisher: Sussex European Institute
Year: 2004
Language: en
Ressource: Einzelne Berichte, Studien
Keyword: EU expansioninstitutional changeinstitutional economicseconomic changePoland
Subject: European Community budget and financial managementEconomic policy and planningEconomic development. Economic growth
Countries Scheme: Poland
Online Ressource: vorübergehend nicht erreichbar!
Bitte beachten Sie die urheberrechtlichen Bedingungen der Dokumentenbenutzung / Please observe the copyright when accessing the document | Quelle / Source: Sussex European Institute (http://www.sussex.ac.uk/sei/)
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