Eurozone | The winners and losers from global tax reform
If implemented, the global tax reforms agreed at this month’s G7 meeting would set a floor for corporate tax rates and enable countries to tax companies where they generate income. According to our modelling, the winners in Europe will far outnumber the losers, with the largest economies likely to benefit the most.
What you will learn:
- For the four countries that will be worst affected by the reforms, our modelling points to large hits to their public finances. Three – Luxembourg, Netherlands, and Hungary – have relatively healthy public finances and the impact looks manageable.
- The reforms will leave Ireland as one of the most highly-indebted economies in Europe, based on a public debt to modified GNI metric.
- For the eurozone the net impact on debt-to-GDP ratios is positive, with an average 0.4ppts improvement, driven by the largest economies.
Tags:
Related Services
Post
Big shifts are underway in Russia-China trade
Data for Q3 on the volume of China's imports of crude from Russia show a drop against the June level. Rather than an indication that China's demand has peaked, this may be a sign that China is preparing for the Russian oil price cap recently agreed by G7 by shifting some of its purchases to the grey market.
Find Out More
Post
Indonesia likely to miss fiscal target in 2023
We expect Indonesia's budget balance to show a large deficit in H2 of this year as the cost of fuel subsidies is finally reflected in the fiscal accounts.
Find Out More