Ad
Declared businesses in eastern Europe suffer tax revenue loss and unfair competition from informal firms, says the World Bank (Photo: EUobserver)

Shadow economy in eastern Europe undermines growth, says World Bank

Doing business and working outside government regulation and tax systems in eastern Europe is so widespread that it risks undermining the region's long-term growth potential, says a World Bank report released on Monday (10 September).

"The governments of the new member states in Eastern Europe simply cannot afford a large shadow economy, neither in the short run due to fiscal concerns, nor in the long run due to the shrinking labour force," said World Bank senior adviser, Katarina Math...

Get EU news that matters

Back our independent journalism by becoming a supporting member

Already a member? Login here

Author Bio

Nikolaj joined EUobserver in 2012 and covers home affairs. He is originally from Denmark, but spent much of his life in France and in Belgium. He was awarded the King Baudouin Foundation grant for investigative journalism in 2010.

Declared businesses in eastern Europe suffer tax revenue loss and unfair competition from informal firms, says the World Bank (Photo: EUobserver)

Tags

Author Bio

Nikolaj joined EUobserver in 2012 and covers home affairs. He is originally from Denmark, but spent much of his life in France and in Belgium. He was awarded the King Baudouin Foundation grant for investigative journalism in 2010.

Ad

Related articles

Ad
Ad