U.S. Secretary of State John Kerry on Sunday outlined a $4 billion private investment plan to spur growth in the West Bank, saying it could transform the lives of people, but acknowledged the benefits could not fully materialise unless supported by a moment towards peace between Israel and the Palestinians.
The North Korean government last month introduced a new economic scheme that theoretically allowed companies to pay their workers more for better productivity, reported the Associated Press on Monday.
Nonetheless, a government economist said that the move was not a sign that the communist state was gradually adopting a capitalist free market system.
China will spend close to $5 billion to build an entire city from scratch in the forests near Minsk, the capital of Belarus, reported Bloomberg on Sunday, with the area set to be transformed into a gigantic industrial hub, offering Chinese exporters tax-free entry into Russia and Kazakhstan.
The European Central Bank has offered to assist the EU in the redesign of its planned financial transaction tax (FTT) to ensure the levy does not destabilise financial markets, an indication that the central bank has joined the ranks of sceptics and has ‘deep reservations’ about its impact on the real economy, reported the Financial Times.
The tax is intended to ensure that the financial sector shares the cost of the banking crisis, and is supported by Germany and 10 other eurozone countries who hope the levy will encourage more responsible behaviour by bankers.
The Japanese government on Sunday agreed to grant Myanmar nearly $503 million in fresh development loans, while cancelling about $1.74 billion in debt remaining from pre-1988 contracts, reported the Associated Press.
The UN Security Council meets later this week to discuss a possible Cyprus reunification following talks with leaders of Greek and Turkish sides of the divided Mediterranean island. Officials say Greek and Turkish sides now have strong economic reasons to agree a reunification that could help ease debt problems and speed exploitation of disputed gas fields.
Monday, May 27
Brazil has offered to cancel or restructure nearly $900 million in debt owed to it by African countries, according to a Reuters report, in its latest effort to boost economic ties with the resource-rich continent, which accounted for about $26.5 billion in trade last year.
European leaders have thrown their weight behind a growing momentum on tax evasion crackdown, backing U.S.-led efforts to develop a new global template to end corporate tax scandals and combat banking secrecy.
Amid mounting public outrage over individual and corporate tax scandals, the European Union on Wednesday pledged to clamp down on the “staggering” levels of tax evasion and push for the greater sharing of income information between tax authorities.
Almost 15 million people, or a quarter of the population, in Italy were living in some form of economic hardship at the end of 2012, as the eurozone’s third largest economy endures one of its longest recessions amid soaring unemployment and drastic spending cuts.
The recession that has lasted almost two years has taken a toll on ordinary Italians who are increasingly digging into their savings to make ends meet, said Italy’s national statistic agency ISTAT in its annual State of the Nation report.
The Brazilian government on Wednesday announced that it would freeze up to 28 billion reais ($13.7 billion) in obligatory and discretionary spending this year, following weak economic growth forecasts that could cut into its primary surplus target.
Speaking during a press conference in the capital, Brasilia, Finance Minister Guido Mantega said that the budget freeze would not affect investments set aside for the World Cup next year, as well as other government’s priorities, including education, health and infrastructure.
