$ 6.4 trillion EU tax revenue in 2020

On: Saturday – October 30, 2021

Al-Ektisadia from Riyadh

Revenue from tax and social security contributions to EU countries fell for the first time in more than a decade due to the Govt-19 epidemic.
European statistics firm Eurostat said in a report yesterday that EU countries will collect about 5.5 trillion euros ($ 6.4 trillion) in taxes and social security contributions by 2020, 215 billion euros less than in 2019.
In the eurozone alone, revenues fell by 206 billion euros, while statisticians reported that for the first time since 2009, tax revenues fell, according to Al-German.
According to Eurostat, the cause of the recession was a general economic downturn during epidemics and relief efforts, such as tax cuts implemented to mitigate the effects of the crisis.
In terms of economic output, tax revenues have risen by one per cent as EU economies have shrunk during epidemics.
Last year, taxes and social security contributions accounted for 41.3 percent of EU GDP, up from 41.1 percent the previous year.
In addition, inflation in the euro area rose to a record high this month with a jump in energy prices and supply issues, threatening growth as economies return to pre-epidemic levels.
Year-on-year inflation hit 4.1 percent in October, more than double the European Central Bank’s target, the same level as recorded in July 2008, while energy prices rose 23.5 percent.
According to preliminary estimates by the European statistics agency Eurostat, the economy of the European single currency region has grown slightly in the third quarter of this year.
And according to Reuters, the euro area’s GDP rose 2.2 percent in the third quarter, up from 2.1 percent in the second quarter.
Experts expect the euro zone to grow 2 percent in the third quarter.
On an annual basis, the growth rate of the European single currency fell to 3.7 percent in the second quarter from 14.2 percent, but the pace of growth was 3.5 percent faster than economists had expected.
The EU’s growth rate, which includes 27 countries, was 2.1 percent in the third quarter compared to the previous quarter, while Black’s growth rate was 3.9 percent compared to the same period last year.
“The eurozone continues to recover strongly, but the pace is moderate,” said Christine Lagarde, president of the European Central Bank.
He said inflation in the euro area would “last longer than expected”, but would fall next year when energy prices rise, explaining that the European Central Bank will not raise interest rates until medium-term inflation rises above 2 percent. The goal.
Currently, the European Central Bank expects inflation to fall to 1.5 percent by 2023.
Holner Schmidt, an economist at the Bank of Bernberg, agreed with these expectations, saying that inflation would fall to that level by the end of next year.
“So we expect the European Central Bank to start raising interest rates in late 2023 instead of 2022,” he added.