Even in times of rapid economic growth many EU states struggle in their fight with illicit trade and undeclared labour. The risk of growth of the shadow economy may begin to rise as economic forecasts worsen.
What drives illicit trade and the undeclared labour market? What causes come to play the most in the illegal excise goods market: is it taxes and regulation, public justification of the shadow economy, or flawed detection and penalties? Finally, are governments using the right strategies to counteract illicit economic activity?
New empirical research from the Lithuanian Free Market Institute provides unique evidence of the actual drivers of the shadow economy from a comprehensive cross-country perspective.
The event will discuss key arguments that should underlie EU decision making if we are to see any breakthrough in minimizing the staggering and disturbing differences in levels of illicit trade and labour among member states. Continue reading →
It is crucial for Greece to have its private sector recapitalized in order to overcome the burdens of the sovereign debt crisis. Without liquidity and the possibility for Greek small and medium-sized enterprises (SME) to finance themselves through credits, it will be almost impossible to stimulate the starving private economy.