Rising taxes and de -industrialization: Europe's economic crisis is progressing!

Rising taxes and de -industrialization: Europe's economic crisis is progressing!

Deutschland - The persistent deinstustrialization in the European Union has accepted worrying proportions. According to our-mitteleuropa.com there is an increase in public debt and an increased risk of bankruptcy. In this context, France announces new tax increases, while Italy will raise the capital gains tax from 26 % to 42 %. The step of Italy is part of a larger trend in the region, which is supplemented by the abolition of the "non-death" rules in the United Kingdom, which further restricts tax incentives for wealthy citizens.

In addition, there is a worrying increase in wealth taxes in Europe. By increasing wealth taxes, Norway has a dramatic loss of $ 594 million in annual tax revenue because rich citizens leave the country. Spain, on the other hand, reports of 1,000 less wealthy taxpayers and has the first negative millionaire flight since the introduction of wealth tax. On the whole, the United Kingdom lost 12,500 wealthy private individuals in 2023, with a further 9,500 that are expected for 2024

Tax developments

A new proposal for the introduction of a move tax for citizens who leave the country became loud in the discussions. In addition, there are signs of possible confiscation of assets in the EU. A central EU register to promote financial transparency could lead to the mandatory registration of all assets, including bank accounts, stocks, real estate and cryptocurrencies. In this context, Bitcoin is also mentioned as a possibility of self -storage to avoid possible confiscation.

Dein industrialization is not only perceived as a risk in Spain and Italy, but also in Germany the threat increases by this development. Michael Hüther from the Institute of German Economy warns of the serious risks that bring high energy prices and a high tax burden for the competitiveness of Germany. The rarer industrial investments could hinder the necessary structural change, which is also supported by experts like Sylwia Bialek and Monika Schnitzer. These experts predict winners and losers in the industrial environment and emphasize that energy -efficient companies could be more advantageous.

effects of the energy crisis

The energy -intensive industry, especially the chemical industry, is already faced with considerable challenges. According to Eric Heymann's assessments of Deutsche Bank Research, the proportion of the processing trade in the gross value added in Germany is expected. The structural change in industry is also accelerated by the current energy crisis. Steffen Müller from the Leibniz Institute for Economic Research Halle emphasizes that gas-intensive products may be imported more easily. In this situation there is also a clear distinction between large German industrial companies that can better internationalize their activities, and the German middle class, which has greater difficulties to adapt to the changing framework conditions.