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July 22, 2016 | Ease in Doing and Starting a Business: US and UK vs. Europe, Rest of World

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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)

EconomyEase of Doing Business RankEase in Starting a Business
United Kingdom617
Sweden816
Norway924
Finland1033
Germany15107
Estonia1615
Ireland1725
Iceland1940
Austria21106
Latvia2227
Portugal2313
Poland2585
Switzerland2669
France2732
Netherlands2828
Slovak Republic2968
Slovenia2918
Spain3382
Czech Republic3693
Romania3745
Bulgaria3852
Croatia4083
Hungary4255
Belgium4320
Italy4550
Cyprus4764
Turkey5594
Greece6054
Luxembourg6180

Ease in Doing Business – Global Top 20

EconomyEase of Doing Business RankEase in Starting a Business
Singapore110
New Zealand21
Denmark329
Korea, Rep.423
Hong Kong SAR, China54
United Kingdom617
United States *749
Sweden816
Norway924
Finland1033
Taiwan, China1122
Macedonia, FYR122
Australia1311
Canada143
Germany15107
Estonia1615
Ireland1725
Malaysia1814
Iceland1940
Lithuania208

Ease in Starting a Business – Global Top 20

EconomyEase of Doing Business RankEase in Starting a Business
New Zealand21
Macedonia, FYR122
Canada143
Hong Kong SAR, China54
Armenia355
Georgia246
Lithuania208
Singapore110
Australia1311
Belarus4412
Portugal2313
Malaysia1814
Estonia1615
Sweden816
United Kingdom617
Slovenia2918
Belgium4320

I created the tables from a subset of “Ease of Doing Business Rankingsâ€.

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

CountryCorporate Tax Rate %HighestLowest
Austria255525
Belgium334833
Bulgaria1040.210
Croatia2020.3220
Cyprus12.52910
Czech Republic194519
Denmark23.55023.5
Estonia202620
Finland2061.820
France33.35033.3
Germany29.6556.829.4
Greece294920
Hungary195016
Ireland12.55012.5
Italy31.453.231.4
Latvia152915
Lithuania152015
Luxembourg29.2240.2928.6
Malta353535
Netherlands254825
Poland194019
Portugal2155.121
Romania163816
Slovakia224519
Slovenia172517
Spain283528
Sweden2260.122
United Kingdom205220
Euro area Average24.636.824.3
European Union Average22.835.222.8

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

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July 22nd, 2016

Posted In: Mish Talk

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