Duties And inflation They are two fatal diseases of the market economy. With the former, a state thinks of helping home companies, making the assets produced abroad more dear. With inflation, it is thought to deceive citizens by making them believe that, swelling prices and wages, they are richer. They are two optical illusions, deleted from the history of the economy. When Trump thinks of solving Americans’ commercial deficits by imposing a 25% rate on imports of goods and services, as he wants to do with Europe who has social standards similar to the United States, he therefore makes a mistake. Everyone will lose us: the Americans will pay more dear the assets they want to buy and the companies of the old continent will produce less.
In short, why have they been silent so far? The suspicion is that if the duties to our companies impose the community barriers are fine, if threatens them Trump they become infernal. But that’s not enough. Just two days ago, coincidentally, the European Commission said he wanted to mitigate the effects of the CSRD and then of the CSDDDD and again of the CBDM. These phenomenal bureaucrats are invented abbreviations not to speak clearly. These are three directives that are equivalent to duties and more costs for European companies compared to competitors. With the first we oblige our companies to very expensive financial reports, with the second we think of controlling the quality of the production chains and the third is a real tax on 90 percent of goods importers.
Commissioner Dombrovskis has promised to delete them (despite being an accomplice in introducing them) admitting that “they are very expensive reporting obligations”. It is estimated that the cancellation of the first abbreviation is worth more than 6 billion less costs for European companies.
The moral of this story is very simple. We complain, with excellent reasons, of the threatened duties of Trump, but we pretend we do not have worse in our house: and which moreover we apply them to the only community companies.
TheVermilion.com is also on WhatsApp. Simply click here to register for the channel and always be updated (free).