The economic damage of a brexit would be much worse than predicted in most mainstream studies before.
Over the years, European value chains have become increasingly relevant to employment in the EU. While research on industrial value chains is broadly covered in recent years, the effects of valuechains in European service sectors still needs to be quantified.
The National Institute of Economic and Social Research (NIESR) in London hosted another meeting of European business think tanks with which the IW regularly exchanges views. The topic this time was the relevance and development of global value chains.
Politicians accuse corporations of sneakily shifting their profits to tax havens. In fact, tax revenues in low-tax countries such as Ireland and Malta have risen sharply over the past 20 years. However, revenue growth in large countries like Germany and France is not slow. Interestingly, EU countries which favor the unanimity rule in tax issues show higher growth rates in tax revenue than countries preferring a qualified majority system.