A couple of spreadsheets can easily explain why QE and negative interest rates cannot possibly fix what ails the EU. The same spreadsheets show why the UK was smart to Brexit.

Ease in Doing Business – UK vs. Rest of Europe (Not Just EU)

Economy Ease of Doing Business Rank Ease in Starting a Business
United Kingdom 6 17
Sweden 8 16
Norway 9 24
Finland 10 33
Germany 15 107
Estonia 16 15
Ireland 17 25
Iceland 19 40
Austria 21 106
Latvia 22 27
Portugal 23 13
Poland 25 85
Switzerland 26 69
France 27 32
Netherlands 28 28
Slovak Republic 29 68
Slovenia 29 18
Spain 33 82
Czech Republic 36 93
Romania 37 45
Bulgaria 38 52
Croatia 40 83
Hungary 42 55
Belgium 43 20
Italy 45 50
Cyprus 47 64
Turkey 55 94
Greece 60 54
Luxembourg 61 80

Ease in Doing Business – Global Top 20

Economy Ease of Doing Business Rank Ease in Starting a Business
Singapore 1 10
New Zealand 2 1
Denmark 3 29
Korea, Rep. 4 23
Hong Kong SAR, China 5 4
United Kingdom 6 17
United States * 7 49
Sweden 8 16
Norway 9 24
Finland 10 33
Taiwan, China 11 22
Macedonia, FYR 12 2
Australia 13 11
Canada 14 3
Germany 15 107
Estonia 16 15
Ireland 17 25
Malaysia 18 14
Iceland 19 40
Lithuania 20 8

Ease in Starting a Business – Global Top 20

Economy Ease of Doing Business Rank Ease in Starting a Business
New Zealand 2 1
Macedonia, FYR 12 2
Canada 14 3
Hong Kong SAR, China 5 4
Armenia 35 5
Georgia 24 6
Lithuania 20 8
Singapore 1 10
Australia 13 11
Belarus 44 12
Portugal 23 13
Malaysia 18 14
Estonia 16 15
Sweden 8 16
United Kingdom 6 17
Slovenia 29 18
Belgium 43 20

I created the tables from a subset of “Ease of Doing Business Rankings”.

Congratulations to New Zealand!

Congratulations are due New Zealand for ranking number 1 globally in starting a business and #2 globally for ease in doing business.

Corporate Tax Rates

Widely varying corporate tax rates are another piece of the EU trouble puzzle.

Let’s review Stellar Opportunity for UK to Set Example for the World

Let the EU Self Destruct

France and Germany want financial transaction taxes. Let em. It will mean more business for the UK, not less.

France insists on agricultural tariffs. Should the UK care now?

The EU does not like Ireland’s low corporate tax rate so much so that the EU is Considering a Minimum Corporate Tax.

Should the EU insist on such silliness, it will drive business to the UK, not away from London.

Trade War the Right Way

The UK should preemptively stick it to the EU by slashing its corporate tax rate to 10%, lower than any country in the EU.

European Corporate Tax Rates

Country Corporate Tax Rate % Highest Lowest
Austria 25 55 25
Belgium 33 48 33
Bulgaria 10 40.2 10
Croatia 20 20.32 20
Cyprus 12.5 29 10
Czech Republic 19 45 19
Denmark 23.5 50 23.5
Estonia 20 26 20
Finland 20 61.8 20
France 33.3 50 33.3
Germany 29.65 56.8 29.4
Greece 29 49 20
Hungary 19 50 16
Ireland 12.5 50 12.5
Italy 31.4 53.2 31.4
Latvia 15 29 15
Lithuania 15 20 15
Luxembourg 29.22 40.29 28.6
Malta 35 35 35
Netherlands 25 48 25
Poland 19 40 19
Portugal 21 55.1 21
Romania 16 38 16
Slovakia 22 45 19
Slovenia 17 25 17
Spain 28 35 28
Sweden 22 60.1 22
United Kingdom 20 52 20
Euro area Average 24.6 36.8 24.3
European Union Average 22.8 35.2 22.8

The above table created from Trading Economics data.

Europeans, Keep Calm, Move to the UK

Keep Calm!

Image modified from UK Sun article Cheeky Campaign to Steal British Business After Brexit

Economic Madness

Brussels wants Spain, Greece and Italy to balance the budget by raising taxes. Meanwhile the ECB punishes savers with negative rates.

One look at the first set of spreadsheets is all you need to know what ails France, Spain, Italy, and Greece.

France is a socialist madhouse of anti-business rules, Italy is a competitive basket case,  and Greece is towards the bottom on the European barrel on everything.

Monetary policy cannot fix productivity issues, or structural flaws in the euro itself, but the ECB insists anyway. For details, please see Dear ECB, What’s in Your Wallet?

Mike “Mish” Shedlock