Council on Economic Policies

We are announcing the launch of the revised version of the Global Tax Expenditures Transparency Index (GTETI 1.1). New features, enhanced methodology... Do you want to learn more? Join us on Tuesday, December 3, (13:00-14.30 CET), in the context of the Second Meeting of the Community of Practice (CoP) on Tax Expenditures (TEs), a joint initiative by ATI International Tax Compact, CEP, and the German Institute of Development and Sustainability (IDOS). https://lnkd.in/d-SDFPZi

Effective #climateaction requires a mix of different policy instruments including pricing and non-pricing measures. CEP Senior Associate Patrick Lenain zooms in on the need for governments to move beyond stand-alone policies towards strategies that combine carbon pricing with non-pricing measures such as tax incentives and appropriate regulatory frameworks. Recent policy packages such as the EU’s #FitFor55 and the UK’s #NetZero strategy are cases in point. Finance ministries play a crucial role in driving this agenda.  Read the policy brief: https://lnkd.in/dtx9Xy-3

Join the discussion on Friday 15 November (14.00-15.00 CET)! ▶️ Details & Registration: https://lnkd.in/dePwX9Nf

📰 Fresh off the press: The newest edition of CEP Perspectives with insights and reflections from the Council on Economic Policies. Join us in the debate and subscribe to receive the newsletter and further updates in your mailbox. 👉 https://lnkd.in/dT8Na_k4

The 1st webinar in our series on E-Commerce, Trade, and Development: Policy Frameworks in Africa will explore Africa's journey toward a digital single market and how developing countries can benefit from well-regulated digital services. Join the discussion on Friday 15 Nov, 14.00-15.00 CET, with Antonia Carzaniga, Bernard Hoekman, Franziska Sucker, Geoffroy GUEPIE, Mishael M. Wambua, and Hildegunn Nordas. Zoom registration 👉 : https://lnkd.in/dgWTbbPj

Join us online or in person on 13 November for a side event, co-hosted by FGV - Fundação Getulio Vargas (FGV) and the Council on Economic Policies (CEP), during the T20 Brasil Summit to present and discuss two new publications on tax expenditure policy. ➡️ The T20 policy brief on "Tax Expenditures Reporting: A Call to Action for G20 Governments" by Agustín Redonda, Paolo de Renzio, Santiago Díaz de Sarralde, Amina Ebrahim, Hazel Granger, Kyle McNabb, Christian von Haldenwang, Everlyn Muendo, and Chenai C. Mukumba. ➡️ The upcoming Tax Expenditures Country Report for Brazil by Paolo de Renzio and Manoel Carlos Pires (both from the (FGV - Fundação Getulio Vargas), to be published as part of our Tax Expenditures Country Reports Series. 👉 Details and registration: https://lnkd.in/dch27xsP

Join us on 15 November for the inaugural webinar in our series on E-Commerce, Trade, and Development: Policy Frameworks in Africa. We’ll explore Africa's journey toward a digital single market and how developing countries can harness the benefits of open, well-regulated digital services. Speakers include: Antonia Carzaniga - World Trade Organization; Bernard Hoekman - Robert Schuman Centre for Advanced Studies; Franziska Sucker - University of the Witwatersrand; Geoffroy GUEPIE - United Nations ECA; Mishael M. Wambua - GIZ Kenya; and CEP Senior Associate Hildegunn Nordas. African Continental Free Trade Area (AfCFTA) Secretariat https://lnkd.in/dePwX9Nf

As environmental hazards intensify, CEP Senior Associate Sunil Sharma Institute for International Economic Policy (IIEP) at GW calls for urgent reforms to strengthen financial systems. "Despite over a decade of reforms, financial systems remain fragile, and with the ongoing degradation of the biosphere addressing these fragilities is becoming even more challenging. The green digital transition requires innovation and experimentation. Laws and rules must support competition for novel technologies and solutions, allow for failure, and facilitate re-allocation of labor, real assets, and capital. Hence, the case for robust banks, nonbank financial intermediaries, and market infrastructure is even more urgent and compelling. Complexity and deep uncertainty characterize the green digital transition and the operation of economic systems. Taking this seriously means recognizing that simpler heuristic approaches may dominate complicated optimization strategies. We have to be cognizant of what we know, what we can know over relevant time horizons, and what may be unknowable. Given the weaknesses of the current approach to financial regulation and oversight, changes in institutional and financial structure should be considered that would reduce the use of “runnable” short-term debt, create more transparency and better incentives for all players, and hence lessen the need for complicated rules, explicit and implicit State guarantees, and interventions in markets. In an era of chronic and acute disruptions, durable price and financial stability will require not just accounting for financial hazards, but also engaging in promoting a structural transition. With time running out and the world approaching critical ecological thresholds, central banks and financial regulators will have to integrate environmental considerations into their operations and policies, and collaborate more closely with other government agencies. To increase the systemic resilience of the financial sector, this policy brief argues for: (i) simplicity in prudential rules; (ii) higher buffers in financial institutions; (iii) greater modularity in the structure of the financial system; (iv) better use of market forces and public discipline; and (v) more credible and effective supervision." Read the policy brief 👇: https://lnkd.in/dZJvRk-b

Climate and environmental risks are systemic threats to our economies and financial systems that international supervisory bodies have repeatedly highlighted. Any systemic financial risk calls for adequate macroprudential policy; climate risks are no exception. In their new policy brief, Satoshi Ikeda and Pierre Monnin suggest using systemic capital buffers to address climate systemic risks. They propose four guiding principles—absorption, prevention, individualization, and recalibration—to design systemic capital buffers that enhance the robustness of financial institutions against climate shocks and support transition efforts to mitigate the buildup of these risks over time. #SustainableFinance #ClimateRisks #Macropru #SystemicRisks https://lnkd.in/dm2-tm4Q

The latest tax expenditures country report by Priya Sahu dives into the world of India's tax expenditures (TEs) and how to increase their effectiveness and transparency. TEs represent a significant portion of India’s government spending. Careful management of TEs to ensure they do not undermine the country’s fiscal health is thus critical. While India has been publishing TE reports since 2006, the Global Tax Expenditures Transparency Index highlights areas for improvement, such as better disclosure of the policy objectives that TEs are meant to target, and the inclusion of Goods and Services Tax (GST) exemptions in revenue forgone estimates. For more on pathways to enhance transparency and evaluation, as well as to ensure fiscal prudence in relation to India’s tax expenditures please find the full report here: https://lnkd.in/gzB2zT27 #India #taxexpenditures