Public economics

The government will not give up on offering subsidies - it is actually considering to raise them to attract more foreign investors, Aleksandar Vucic has said.

“We would like to be more competitive in attracting new investments,” Vucic said on Wednesday.

With no deal in sight with the Quartet and cash running out fast, the Greek government is trying desperately to avoid a disastrous defeat which would bring the country on the brink of financial disaster and caused political shakeup of seismic proportions.

According to data from the Greek Finance Ministry, Greek households and businesses are unable to pay off overdue taxes to the state. In the first two months of 2016 the situation has deteriorated, a particularly worrisome development as the 2016 tax collection term has not even started. According to the data, the overdue tax payments in only 60 days have increased by 2.7bln Euros.

The economic team of the Greek government is expecting the answer of the institutions on whether the new measures proposed are sufficient or even more strict measures would be required.

Alternate Finance Minister Tryfon Alexiadis admitted on Friday that more taxes will be imposed saying that “Of course there will be a further tax burden on 2016 incomes, but it will be fair and proportionate from a certain income level upwards”.

Despite the tax hikes imposed in 2015, the Greek state managed to collect less revenue compared with 2014.

Although the VAT rate increased on the islands, food and other products, revenue from VAT in 2015 increased only 12 million euros or 0.09%.

Croatian Prime Minister Tihomir Oreskovic has announced a new property tax for 2017, which will slap bills on people with more than one home, or who do not use their real estate.

"When one taxes a single property, it's a social category, but when a second, third or fifth property are taxed, then it is an economic category," Oreskovic said on Monday.

Turkish home appliance producer Arçelik has said the Economy Ministry's Directorate of Incentive Implementation and Foreign Investment approved incentives for its planned investments worth 1.14 billion Turkish Liras ($376 million on Jan. 14 parity), in a written statement to the Public Disclosure Platform (KAP) on Jan. 14. 

The European Commission ordered Belgium on Jan. 11 to recover 700 million euros ($763 million) from 35 large companies in back taxes in the EU executive's biggest move yet to crack down on tax avoidance by multinationals.

Alternate Finance Minister Tryfon Alexiadis left open the possibility of abolishing VAT on Greek islands that which face social and economic problems caused by the mass influx of refugees, while speaking in Parliament on Friday.