Black economy

‘Crisis hits Czech crooks. But only a little.’

Published on 7 November 2013 at 12:21

Cover

The informal business sector in Europe is worth €2.152trn, according to experts from the Johannes Kepler University in Linz, Austria. Undeclared work accounts for one third of this figure.

Although it is astronomical, this is the lowest estimate in the past three years, thus negating the hypothesis that the underground economy was boosted by the 2008 financial and economic crisis.

On the contrary, reports Czech daily Lidové noviny, the informal sector is under increasing pressure because, on the one hand " the crisis and the lack of money has had an impact on the usual clients of the underground economy such as prostitutes and drug dealers". On the other hand, "there are the efforts of the authorities to scrounge every euro to reduce public deficits," which have improved tax collecting methods.
The underground economy today represents 15.5 per cent of the Czech Republic's GDP, that is 0.5 per cent less than a year earlier.

Receive the best of European journalism straight to your inbox every Thursday

Was this article useful? If so we are delighted! It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans. Discover our membership offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic