Think Tank Library

Does a "social VAT" hold the key to the future financing of "social protection"? Judging by a recent report from Eric Besson, France`s secretary of state for public policy prospects and evaluation, the value added tax could reduce labour costs and boost the country`s international competitiveness.

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The "market test" and freedom of choice of insured patients remain the sole criteria to determine if therapeutic categories – on which therapeutic substitution policies are based – are clearly defined and, in addition, if insurance policies based on these categories provide added value in their view. It is worrying to see that these criteria are missing in the context of the legal monopoly of public health insurance systems which are putting in place such policies.

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A new Report by a coalition of over 40 prominent civil society organisations from 33 countries says governments should reject calls for a post-Kyoto treaty (“Kyoto 2”) with binding limits on carbon emissions. The report says a better strategy would be to focus on removing barriers to adaptation, such as subsidies, taxes and regulations that hinder technological innovation and economic growth.

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Anti-trust authorities forget that competition is not measured by the number of competitors but by the absence of such barriers enabling competition to remain vigorous even when there is just one company in a market niche.

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Tax expert Damon Lambert examines the case for EU-wide tax harmonisation, the European Commission’s drive towards it and the UK government’s response. The Commission pursues tax harmonisation with vigour; last year it increased the funding of its two key programmes by 137%. The Commission – despite the lack of evidence that tax harmonisation would benefit the EU and against the wishes of most Member States – seeks undemocratic methods to pursue its tax harmonisation goals, often regardless of the wider consequences.

This is the published version of the inaugural Colin Cramphorn Memorial Lecture, hosted by Policy Exchange. The lecture was given by Peter Clarke, the Head of the Metropolitan Police Counter Terrorism Command, and ranged widely over issues of national security and the fight against terrorism.

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Based on a talk by Luke March

“For some time it looked as if every day would bring a new youth organisation, particularly in the aftermath of the August 2004 Orange Revolution in Ukraine. It seemed for a while that revolution could be a possibility in Russia. Youth organisations were seen as heralding a change in Russian politics, and politics were more on the streets.”

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European anti-trust authorities, acting under the pretext of preserving competition, have been moving against certain trade practices and price variety – judging them “discriminatory” – especially when applied by “dominant” firms.

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Based on a talk by Elisabeth Robson

“For virtually all of the Soviet period it was impossible to measure audiences accurately or even establish what kind of people listened. The best we could manage were educated guesses based on letters, personal encounters and Soviet press reports. The post-Soviet world saw the arrival of western-style audience research, but also new difficulties of interpretation, and in addition massive constraints of cost.”

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Anti-trust bodies impose fines or regularly penalise successful companies holding significant market shares in the name of an “abuse of dominant position.” Instead of favouring competition, such interventions are based upon myths, decrease market rivalry and distort in fine the market process. The Microsoft case is a good example of the pernicious role played by these myths in real life competition.

To view the Economic Note, click here (English)

To view the Economic Note, click here (French)