http://www.actmedia.eu/2009/09/25/top+story/study%3A+in+2005+romania+ranked+ 4th+in+eu+for+share+of+underground+economy+in+gdp/23173 Study: In 2005 Romania ranked 4th in EU for share of underground economy in GDP Date: 25-09-2009
Study: In 2005 Romania ranked 4th in EU for share of underground economy in GDP <http://www.actmedia.eu/media/img/text_zones/English/small_23173.jpg> In 2005 Romania ranked 4th in EU for the share of underground economy which represented a third (35.4%) of GDP according to a study published on Thursday by the consulting firm AT Kearney. In 2005 at a GDP value of 79.587 billion euros the underground economy was estimated at 28.174 billion euros, according to a study made by AT Kearney and professor Fridriech Schneider, an expert in untaxed economy. The study takes into account all 27 member states as well as Croatia, Norway, Switzerland and Turkey. Underground economy is made of the ensemble of legal activities carried out by avoiding certain regulations. It has two components, undeclared labour, which represents two thirds of total, and the declaration of lower levels about business or paid salaries. Countries which frequently use electronic payment, such as Great Britain and Holland, have lower percentages of underground economy than states with low levels of electronic payment, such as Bulgaria and Romania, the study shows. The highest percentages of GDP represented by the underground economy were in Latvia (39.4%), Estonia (38.2%) and Bulgaria (36.5%) while states which controlled best this phenomenon were Austria, where underground economy was 9.3% of GDP and Great Britain with 10.3% of GDP. With absolute values, Italy ranked first with an underground economy of 348.5 billion euros, followed by Germany (345.7 billion euros) and France (222.8 billion euros) which were also the biggest economies in Europe. At an estimated value of 2,000 billion euros, underground economy in Europe is significant, going from 10% of GDP in Great Britain to 40% in some countries in Central and Eastern Europe. Governments have established clear objectives of reducing this type of activity, but for certain reasons they have not found a solution, the AT Kearney study shows. The study points out that the main factors influencing the volume of underground economy are making savings by not paying all taxes, the absence of the guilty feeling and the low risk of detecting those who avoid the law. Copyright <http://www.actmedia.eu/> Actmedia News Agency ---------------------------- Vali "Noble blood is an accident of fortune; noble actions are the chief mark of greatness." "When the power of love overcomes the love of power, the world will know peace." Aboneaza-te la <mailto:[email protected]> ngo_list: o alternativa moderata (un pic) la [ngolist] Please consider the environment - do you really need to print this email?
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