The tax war between the US and the EU appears to be over. It was triggered by the EU’s minimum tax on, among other things, foreign subsidiaries whose parent companies do not pay at least 15% tax on their accounting profits.
Europe’s ambition to lead in emerging technologies is being held back by a fragmented and risk-averse regulatory culture. Despite repeated promises to reduce red tape, EU institutions continue to introduce overlapping digital laws that place a heavy compliance burden on startups, reinforce incumbent advantages, and discourage innovation.
Reviving Europe’s Competitive Edge analyses the European Union’s declining influence in the global economy and recommends concrete steps for the Commission on how to regain our economic competitiveness.
In its third consecutive meeting, the Governing Council of the European Central Bank (ECB) cut all three key interest rates by a quarter of a percentage point, as expected. They are now in the range of 3.00–3.40 per cent.
Until the early 2010s, government subsidies in Europe were on a downward trend, partly because of the increasing prevalence and enforcement of competition and state aid rules.