Earlier this month the European Commission announced that Slovakia, a tiny country in Central Europe, will be joining the euro next year.
Some of the reasons behind the economic success of this once poor country:
Wise reforms made by Government: private pension funds were set up, retirement age was raised and social spending was cut. This, in turn, allowed Slowakian officials to cut taxes and introduce a flat tax (17% VAT, 17% Corporate Tax, 17% Income Tax).
Low taxation spurred foreign investment and an impressive growth (+10,4% GDP last year alone).
Perhaps it is time that some of the governments of Western Europe follow suit as well: cutting social and government spending in order to reduce taxes in the end creates much more wealth, not only for the already rich, but for the citizens themselves. Well done Slovakia!
Paolo Ruggeri
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