It is widely acknowledged that Europe lags behind when it comes to digital entrepreneurship. The largest players in the digital economy are based elsewhere, primarily in the US, Japan, Israel, and even China.
The free movement of workers across Member States is one the main historic achievements of the European integration process. Not only is such freedom important from the individual worker’s perspective, dramatically increasing the scope of potential employment opportunities. In a situation of uneven economic development, such mobility has also proven to be an important mechanism as a free-market regulator.
The economic and financial crisis has affected the ability of the EU financial sector to channel funds towards the real economy. Heavy dependence on bank intermediation, combined with bank deleveraging and reduced investor confidence, has reduced funding to the economy.
The small loans market (quick credit, pay-day loans) often gets a lot of criticism in the media. Its critics state that the market has too little supervision; that the industry does not properly assess the ability of customers to repay their loan; and that interest rates are artificially high.
So‐called “sin” taxes are very much in fashion in France and elsewhere. With the aim of reducing “sinful” behaviour and financing the health care system, public authorities are planning to raise the tax load on alcohol and tobacco even higher.
LFMI made a thorough analysis of European Commission’s proposal for the Tobacco directive (2001/37/EC), related public consultation and scientific evidence which was used in developing the proposal and provides comments and suggestions regarding the proposal.
Western governments have developed unfunded social insurance programmes where retiree benefits are paid for from the taxes of the working-age population. This means that an ageing population leads to rising expenditures that cannot be covered without increasing taxes on the young.
For a short period, around the turn of the millennium, the UK energy market was highly competitive, offering choice to consumers and keeping prices in check.