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Patent Boxes Benefit MNEs Rather than Governments, say EconPol Researchers

Research from EconPol Europe into the use of so-called ‘patent boxes’ by multinational enterprises (MNEs) reveals an increase in pre-tax profits of 8.5% for the MNEs. However, there is little evidence to suggest governments which operate the system receive any benefit, and could even experience a reduction in revenues.

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Cross-border risk sharing is essential for European financial recovery, says EconPol report

Cross-border risk sharing through securitisation markets is a crucial element of financial integration in Europe, according to a new policy brief from EconPol Europe. And while the new EU framework for simple transparent and standardised securitisation, due to be implemented in January 2019, is an important step it does not go far enough, say authors Karolin Kirschenmann, Jesper Riedler (ZEW Mannheim) and Tobias Schuler (ifo Institute).

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ifo Institute Expects US Current Account Deficit to Increase Slightly in 2018

The ifo Institute expects a further increase in the US current account deficit, despite the introduction of tariffs by US President Donald Trump. The US current account deficit is expected to total 464 billion US dollars in 2018, or 2.5 percent of annual economic output, according to projections calculated by the ifo Institute based on mid-year figures on the occasion of the annual conference of the EconPol research network.
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Economists Recommend Policies to Encourage a Sense of European Identity

European policymakers need to do more to encourage citizens to identify with Europe. Pan-European political consciousness could be encouraged by having citizens vote for European party lists rather than national party lists in the European elections. An EU Citizens’ Assembly should serve as a platform to discuss specific political issues and propose potential solutions. Europe could also raise its profile overseas through shared EU embassies and consulates. These are some of the main policy recommendations from a new study conducted jointly by the Centre for European Economic Research (ZEW), Mannheim, and the ifo Institute, Munich for the EconPol Europe research network. The authors of the study also suggested the establishment of a European public broadcaster to provide more accurate and neutral information about the EU. There need to be more debates on European issues and international exchanges for groups that have so far had little opportunity to visit other EU countries and who generally do not strongly identify with Europe. Ideally, the European Union should introduce new programmes such as “Erasmus for Pensioners” or a work exchange programme (“European Waltz”) allowing workers to spend several months working in another European country.
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