Death Star Economics



Europe gets stuck in philosophy

It’s a terribly slow news day today, nothing is blowing up, no summits are being held and no presidents leave or enter office. Hmpf.

Ireland is looking at tax increases totalling €400m to meet its 2012 deficit targets. It is unclear if the countries corporate tax rate, which is one of the lowest in Europe and the lowest of the eurozone, will be touched by the new austerity measures, though many advocate that it should be. The Irish economy is expected to grow 0.5% this year. read article

Meanwhile, a philosophic debate about the legitimacy of austerity measures seems to be arising among other European nations. Italy’s industry minister Corrado Passera proclaimed that cuts won’t help Europe grow its way out of the crisis; this is backed by Christine Lagarde of the IMF, who called for more business friendly policies in the EU, where regulators are going wild at the moment. Others, most notably Germany, are holding on to strict budget plans to meet the deficit targets imposed by the new EU fiscal pact. Back, forth, back, forth… read article

More euro-philosophy in Reuters analysisread article

By the way, Greece is still dealing with those bondholders who refuse to take a 800% haircut (no, this is not the actual number…). Yesterday, Dutch bank ABN Amro decided to reject the deal last minute. The bank holds €1.3bn of Greek debt. Another deadline for bondholders to decide whether they will participate in the notorious bond swap is tonight, 8 pm GMT. read article

Do you remember people saying Occupy London [or Cardiff…] won’t have an impact? (Hint: I was one of those people.) Well, they were wrong. While the happy campers living in front of St Paul’s, sales of local shops and cafes slumped, some say by 40-50%. Well done. And for the police to look at the whole thing, more than £900,000 [of innocent tax payers’ money] was spent. The Finsbury Park camp side has already cost £10,000 in surveillanceread article

The Economist on the pursuit of happiness money: a graphic on whether striving for wealth [and saying so] is okay in your countryread article

So long.


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