The ultimate goal of the project is to provide policy options to improve the potential growth of the EU and attainment of a high level of employment, taking into account the challenges from enlargement and the environmental aspirations adopted in the EU. The extensive use of numerical general equilibrium models and econometric estimations will permit the evaluation of the impact of the existing different tax/benefits systems and will yield policy options that can be quantified and adapted to different political constraints.
The project aims to analyse and make contributions in five areas relevant to the tax/benefit systems:
1) The link between tax/benefit systems and employment in the EU;
2) The EU tax systems under tax competition and enlargement;
3) The growth potential of the EU and its relation to the tax/benefit systems;
4) The macroeconomic role of tax systems in promoting reforms in tax systems in the EU under the single monetary policy;
5) Attainment of sustainable growth in the EU with a high quality of the environment and the role of green taxes and emission trading in the energy sector.