‘Intensified’ tax competition will affect euro area – research

Cross border tax evasion

Changes in the international tax landscape will have “highly uncertain and complex” consequences for the euro area, the European Central Bank’s latest bulletin says.

Examining the macroeconomic effects of recent US tax reforms, Ursel Baumann and Allan Gloe Dizioli conclude lower US corporate taxes “raise the attractiveness” of the country relative to other countries.

“A study by the Centre for European Economic Research finds the tax reform will lead to a rise in inbound foreign direct

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