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EconPol Europe: increased tax rates reduce public spending efficiency

Increases in tax rates result in falling public spending efficiency, according to new research from EconPol Europe. This negative effect was found to be more significant for increases in personal income tax and value added tax. In times of economic expansion, increasing the corporate income tax base and reducing personal income tax rates were found to have a positive impact on public sector efficiency.

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EconPol Europe: Economic Experts Expect Global Economy Contraction of 4.4 Percent

Global economic experts surveyed by EconPol Europe expect economic output to shrink by 4.4 percent in 2020, with projected GDP growth predicted to improve to + 3.2 per cent by 2021. But the forecasts - from 950 experts in 110 countries - suggest that recovery from the economic crash caused by the Covid-19 pandemic will be longer than previously expected, with pre-crisis levels not reached until 2022 in many places. 

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Fuest and Pisani-Ferry Favor Financing the EU via Emissions Trading (English, French and German versions)

The EU should receive a new source of funding in the form of revenue from the European emissions trading system (ETS), according to a proposal from Clemens Fuest, President of the ifo Institute and Speaker of the EconPol Europe research network, and Jean Pisani-Ferry, French economist and former Founding Director of the Bruegel think tank. Their joint paper was presented to the EU Economic and Financial Affairs Council (ECOFIN) in Berlin on 11 September.

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