The flexibility of Poland’s labour market has served its economy well and helped it to catch up with the rest of the EU. It has, however, created room for an unprecedented use of temporary contracts, including so-called ‘civil law contracts’. The widespread use of temporary employment can be a mixed blessing. Although it can help cost competitiveness and support higher employment levels, it can slow down physical and human capital accumulation, and weigh on innovation. In the long term, these ‘side effects’ can hamper a re-orientation of the economy towards high-technology products and services and, ultimately, weigh on its future growth potential.
The euro area sovereign debt crisis brought to light the potential risks to public finances posed by the banking sector. This paper simulates the potential impact of bank defaults on public finances based on stress test scenarios using an advance analytical methodology.
Categories: Economic crisis ; Financial markets ; Public finances
Series: Economic Papers
This paper analyses the impact of regulation on product sector mark-ups across the EU and confirms that less strict regulation tends to foster competition and reduce mark-up rates. The results also show that mark-ups in most EU countries and sectors have been declining over the last 15 years as a result of competition-friendly reforms. The paper also casts light on which areas of regulation are most important for mark-ups in individual sectors.