Europe

Leszek Balcerowicz: The Anti-Bernanke

"As an economic crisis manager, Leszek Balcerowicz has few peers. When communism fell in Europe, he pioneered 'shock therapy' to slay hyperinflation and build a free market. In the late 1990s, he jammed a debt ceiling into his country's constitution, handcuffing future free spenders. When he was central-bank governor from 2001 to 2007, his hard-money policies avoided a credit boom and likely bust. Poland was the only country in the European Union to avoid recession in 2009 and has been the fastest-growing EU economy since." Continue reading →

Continue ReadingLeszek Balcerowicz: The Anti-Bernanke

Portugal May Become the First of Europe’s Bankrupt Welfare States to Recover: Less Spending AND Lower Tax Rates

"The Portuguese government is seeking to cut its corporate tax rate for new businesses to one of the lowest in Europe as part of a plan to attract investment and revitalize ailing industries, the minister of economy said. The government is in talks with the European Commission’s competition agency in Brussels to get approval to cut the tax on corporate income for new investors to 10% from the current 25%, the minister, Alvaro Santos Pereira, said in an interview." Continue reading →

Continue ReadingPortugal May Become the First of Europe’s Bankrupt Welfare States to Recover: Less Spending AND Lower Tax Rates

Germans hoarding mountains of gold

"Like Scrooge McDuck or the dragon Smaug in J. R. R. Tolkien's The Hobbit, Germans are gathering vast quantities of gold - a study showed that the average German owns close to €6,000 worth of the shiny metal. Even though Europe's largest economy has weathered the world economic crisis relatively well, Germans have still been extra jittery about their savings, a study by the Steinbeis Research Center for Financial Services in Berlin revealed. Around 32 percent of the gold owned in Germany in the form of bars and coins was accumulated since the financial and economic crises began, the study concluded." Continue reading →

Continue ReadingGermans hoarding mountains of gold

Belgium rejects France’s push to tax French citizens living in Belgium

"Today the Belgian foreign minister gave an interview to the centre-right newspaper Le Figaro, where critics of the socialist president François Hollande are made to feel comfortable. On the French government’s desire to renegotiate tax collection between the two governments, the gentlest possible No Way: 'We’re ready to examine many things, as long as the superior principle of free circulation of people, goods and services within the EU is respected. But if this is about recognizing some French power to tax people who live in Belgium, that’s a whole other matter. Every European country must accept that its citizens decide to live elsewhere.'" Continue reading →

Continue ReadingBelgium rejects France’s push to tax French citizens living in Belgium

Actor Gerard Depardieu ‘giving up French passport’ in tax controversy

"France’s leading actor Gerard Depardieu said on Sunday he was giving up his French passport after being 'insulted' by the prime minister calling him 'pathetic' for becoming a tax exile in Belgium. In an open letter to Prime Minister Jean-Marc Ayrault, the 63-year-old 'Cyrano de Bergerac' and 'Green Card' star said he had been treated unfairly after years of supporting France and paying millions of euros in taxes. Depardieu has joined some of France’s wealthiest business figures in Belgium following moves by President Francois Hollande’s Socialist government to tax annual incomes above one million euros ($1.3 million) at 75 percent." Continue reading →

Continue ReadingActor Gerard Depardieu ‘giving up French passport’ in tax controversy

Amazon’s billion-dollar tax shield

"By setting up in Luxembourg, and channelling sales through its units there, the world's biggest online retailer could minimise corporate taxes. It was a move with big financial consequences. Amazon's Luxembourg arrangements have deprived European governments of hundreds of millions of dollars in tax that it might otherwise have owed, as reported in European newspapers. But a Reuters examination of accounts filed by 25 Amazon units in six countries shows how they also allowed the company to avoid paying more tax in the United States, where the company is based." Continue reading →

Continue ReadingAmazon’s billion-dollar tax shield

Google Revenues Sheltered in No-Tax Bermuda Soar to $10 Billion

"Google Inc. (GOOG) avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenues into a Bermuda shell company, almost double the total from three years before, filings show. By legally funneling profits from overseas subsidiaries into Bermuda, which doesn’t have a corporate income tax, Google cut its overall tax rate almost in half. The amount moved to Bermuda is equivalent to about 80 percent of Google’s total pretax profit in 2011. Governments in France, the U.K., Italy and Australia are probing Google’s tax avoidance as they seek to boost revenue during economic doldrums." Continue reading →

Continue ReadingGoogle Revenues Sheltered in No-Tax Bermuda Soar to $10 Billion

CIA beat and sodomized wrongly detained German citizen

"CIA agents tortured a German citizen, sodomising, shackling, and beating him, as Macedonian state police looked on, the European court of human rights said in a historic judgment released on Thursday. In a unanimous ruling, it also found Macedonia guilty of torturing, abusing, and secretly imprisoning Khaled el-Masri, a German of Lebanese origin allegedly linked to terrorist organisations. Masri was seized in Macedonia in December 2003 and handed over to a CIA 'rendition team' at Skopje airport and secretly flown to Afghanistan. It is the first time the court has described CIA treatment meted out to terror suspects as torture." Continue reading →

Continue ReadingCIA beat and sodomized wrongly detained German citizen

Europeans outraged over the US using Patriot Act for worldwide spying

"Researchers from the University of Amsterdam’s Institute for Information Law say that legislation enacted to allegedly protect the security of US citizens has in the process eroded privacy protections on a global scale. As more and more companies and individuals across the world begin relying on cloud computing to store information digitally on remote servers, the Dutch researchers warn that the Patriot Act and the Foreign Intelligence Surveillance Act (FISA) allow for those files to be fed into the US intelligence community, disregarding privacy safeguards in place for others around the globe." Continue reading →

Continue ReadingEuropeans outraged over the US using Patriot Act for worldwide spying

Detlev Schlichter: What is wrong about the euro, and what is not

"Merkel is desperately trying to pretend that these governments are not bankrupt, that the debt will be repaid, and in so doing she throws good money – that of the German taxpayer – after bad. Most of the governments in Europe, plus the US, the UK and Japan, are unlikely to ever repay their debt, and the big risk is that, once the 40-year fiat money boom that facilitated this bizarre debt extravaganza has ended for good, a lot of that debt will have to be restructured, which means it will be defaulted on. That is not the end of the world, albeit the end of the type of government largesse that has defined politics in the West for generations." Continue reading →

Continue ReadingDetlev Schlichter: What is wrong about the euro, and what is not