Italy has doubled the flat tax on foreign income for wealthy new residents who have been flocking here to take advantage of it.
The €100,000 a year payment — which exempts people moving to the country from taxes on overseas earnings, gifts, and inheritance for 15yrs — will rise to €200,000. The previous €100,000 tax incentive was popular w/wealthy individuals but controversial among Italians, particularly in Milan, the business capital. The recent influx of the super-rich has been blamed for significantly increasing real estate prices and living costs. The increaed flat tax for the billionaires is still set at a level that would remain interesting to wealthy foreigners, FinMin Giorgetti said. Source: Bloomberg, HolgerZ
Why the ECB should keep interest rates at the lowest level possible explained in one chart
The Euro zone is an equilibrium where high debt countries like Italy, France and Spain run big deficits. The ECB enables this by capping yields when these spike like they did in 2022. This policy is an implicit subsidy of high debt countries by low debt ones... Source: Robin Brooks
German inflation unexpectedly accelerated in July to 2.3% YoY from 2.2% in June as food price inflation keeps rising, core inflation, and services inflation remain sticky at 2.9% and 3.9%.
Source: HolgerZ, Bloomberg
Chinese EVs Seize Record 11% Share in Europe Ahead of Tariffs - Bloomberg
Chinese brands captured 11% of the European electric-car market in June, notching record registrations as manufacturers raced to beat stiff European Union tariffs that took effect early this month.
As highlighted by Michel A.Arouet on X: the German business model was based on:
1. Cheap energy from Russia 2. Cheap subcontractors in Eastern Europe 3. Steadily growing exports to China All three are gone by now, and not much has been done to change the trend. Source: Bloomberg, Michel A.Arouet
Interesting point by HolgerZ on X. Unlike on Wall Street – big stocks in germany are still doing well, while small stocks are struggling.
This can be seen in the ratio of the Benchmark Index Dax to the Mid-Cap-Index MDax, which hit its highest level since 2011. This could be because the economy isn't doing great, and small companies are more affected by this. The Purchasing Managers' Index for Germany dropped below make-or-break 50 this week, highlighting Germany's economic challenges. Source: HolgerZ, Bloomberg
Since its inception in 1999, the Euro has lost 40% of its purchasing power.
To put this into perspective: 1 Euro today can only purchase about 60% of what it could back in 1999. Source: Relai 🇨🇭
What is happening in Poland is nothing short of economic wonder.
Standard of living in Poland overtaking Spain and Italy within just one generation is amazing. Source: Michel A.Arouet, IMF
