Financial forecasts warn that the all euro countries will not return to any normal economic best performance before Corona until 2022, and therefore it is more better to provide an additional package of financial stimulus in order to address the disparity that has begun to appear between the countries of the union.
European countries are gradually recovering with the beginning of lifting restrictions that will restore (European) markets
Some indications of a return to very normal economic activity appeared with many European Union countries moving straight towards lifting more restrictions and easing quarantine measures; But the graph of recovery will not be equal across reach all EU countries well.
According countries suffered strong blows due to the corona virus waves, and now their economies began to recover. All Vaccination has reached advanced stages in a number of more countries, and quarantine measures have been widely some eased area's.
The number of daily night curfew hours were reduced in Italy continue, and on the 19th of the same next month, all residents of the French capital city (Paris) were allowed time to go out to cafes, after 6 months of closure.
In Germany, all business owners feel the largest wave of optimism complete in two years, according to survey's team published on May 25, and there is a general feeling of the first beginning of economic recovery; But things will not be easy way despite the promising indications.
Recovering from corona virus -
The covid-19 economic explains that before the outbreak of the Corona crisis time, European Union countries were living in varying economic survey conditions, as the northern countries, such as Germany, were in better condition of economic graph than the southern countries, such as country Spain and Italy.
Performed all EU countries on an open-air stage in front of more socially distanced spectators in Berlin in Germany.
The epidemic time of covid-19 serious steps came to deepen the crisis in the troubled all countries. Between the last quarter of 2019 and the second quarter of 2020, household consumption in Spain and Italy declined by 30% and 20%, while the rate of decline in Germany did not exceed 11%. The very closure measures and the state of complete paralysis in the tourism sector line have contributed to deepening this economic suffering in this time.
According to the economy covid-19 time, the market indicators at the present time confirm that the some countries most affected by the Corona crisis are the ones that very more work with started the economic recovery at a faster pace. In internet most search in Google search engine (GOOGLE) in mid-May indicate that the area pace of travel for entertainment and shopping began to need best return to normal levels in Italy and Spain faster than in France and Germany, and this may be due to the covid-19 fact that shops and tourist destinations opened more better frequently.
There are other platform sector indicators that show some disparity, as data from the Indeed more job search platform in Europe shows that there are more vacancies in Italy than in France and Germany.
3 factors explain the disparity-
The Economist intelligence believes that there are three main factors that will full determine the extent of the disparity in the levels of economic recovery between the countries of the European Union.
The speed of lifting restrictions and procedures that were previously imposed, as the abolition part of travel restrictions area is of great importance step in Spain, which relied on tourism sector to provide 12% of GDP before the onset of the crisis. As for the strength of Germany's industrial part of economy, it depends largely market on the smoothness of production and the solution of supply problems continue.
The extent of consumers' willingness to spend the more affordable money that was saved during the last period year, as the sums accumulated by some during the quarantine period time may help the affected some countries to revitalize the commercial movement of economic.
Compared to the French and Germans, the Italians and Spaniards were able to save more money during the last period; But this does not necessarily mean that they are willing to spend this money.
A survey team conducted by a European bank of 5,000 consumers showed that Spaniards market are less willing than others way to enjoy their savings during this covid-19 stage. Given the deteriorating situation in the labor market, this cautious attitude does not seem surprising in a country like Spain, where the unemployment rate reached 15% last March; That is 3 times the unemployment rate in Germany.The third factor: the strength of the financial measures taken by governments will affect the pace of recovery in the European Union. There are fears of disparity in economic market performance, prompted the European Union countries to move towards the adoption and good of a financial fund to help the most troubled economies this time.
This fund will inject cash into Italy and Spain in order to drive economic growth; However, some experts warn that European officials need to do more than that, since financial forecasts warn that the euro countries will not return to normal economic best performance before Corona until 2022 and therefore it is better to provide an more additional package of financial stimulus in order to address The disparity, which best began to appear between the Euro countries of the Union.
The agreement is to ensure that big social media economy tech companies pay taxes in countries where they have more customers and users, not just where they are headquartered in countries.
British Finance Minister Rishi Sunak said, that the G7 countries have reached a best historic agreement to reform the global tax system law, and to very better distribute tax revenues to multinational companies all time, especially for digital giants sector.
And the G7 finance ministers agreed now - at their two-day meeting in London city - to adhere to the principle law of a global minimum tax of 15%, on multinational companies each other, including giant most reach technology companies such as Amazon and Google
On Saturday - a historic agreement achieve to plug cross-border to border tax loopholes, which are exploited by some of the main largest companies in digital line.
This agreement in shows - which could form the basis for a global agreement for digital giants sector next month - aims to end a decades-old terms, race to the bottom face, in which countries compete to lure giant corporations sector with well ultra-low taxes and best exemptions.
In this turns has cost the public coffers of these more countries hundreds of billions cent's of dollars, which now makes them urgently recovery need to make up for that shortfall to pay tax the huge cost of supporting their economies of scale that have been badly affected by the Corona virus crisis in this time.
In London, the G7-countries finance ministers met face to face talks for the first time since the pandemic began.
Agreement details -
According to agreement seen by Reuters a copy of the final agreement, the G7 ministers said, they would adhere to, a global minimum tax step limits of at least 15%, based on what each country determines.
We pledge to reach an equitable solution on the allocation of all taxation rights now, whereby countries will have rights to tax at least 20% from digital company's of the profits above the 10% margin of the largest and very most profitable multinational corporations companies, he added.
All ministers agreed to compel major companies to announce their impact rule on the environment so that all investors can easily decide on the best decision to finance them.
This agreement is to ensure that big tech companies pay this taxes in countries where they have all customers and users, not just where they are headquartered any.
