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This Europe Economics report for Business for Britain focuses on EU regulation and tax measures affecting wholesale financial services — of vital interest to the City — and considers which, of such regulation introduced at EU level, the UK would have introduced itself, acting alone, and which it would not.
Europe Economics was commissioned by the FCA to undertake the post-implementation review of its Retail Distribution Review (RDR) of the financial advice market. Our report was published on 16th December 2014. We found early indications that the RDR is working as intended, although we also identified issues where further attention may be required. Further details are available here
and our report can be downloaded directly here
To coincide with the third anniversary of the Work Programme’s introduction, the Employment Related Services Association (ERSA), the representative body for the employment support sector, commissioned Europe Economics to model the economic impact of the Work Programme. Europe Economics constructed and calibrated a time series model of the rate at which long-term claimants leave benefits. We then included the Work Programme in order to estimate its effects. The Work Programme was found to have a positive impact on the number of long-term claimants leaving benefits.
In order to understand the wider economic impacts of the programme we then constructed three representative profiles of jobseekers: a single, over 25, jobseeker living in Glasgow; a single, under 25, jobseeker living in London; and a family living in Birmingham – and estimated the economic benefits of the labour market impact found for the workers themselves, for the exchequer and for business.
Our results suggest that of the 1.5 million net attachments there have been under the Work Programme, around 100,000 more people, unemployed for 52 weeks or more, found work between June 2011 and April 2014 than would have without the Work Programme.
The European Union (EU) imported over 9 million tonnes of palm oil and palm kernel meal in 2012. Europe Economics was asked by the Malaysian Palm Oil Council to estimate the scale of the downstream economic activity in the EU and its Member States associated with those imports and the impact of any resulting increase in demand.
The economic impact of interchange fee regulation in Slovenia; a report for Mastercard.
Andrew Lilico, Executive Director of Europe Economics and author of the report, said:
“The impact of similar legislation around the world provides a clear warning of the need for further scrutiny of the proposed regulations. The experience in Spain, Australia and the United States has been that consumers have so far paid more in banking fees, but not seen a reduction in prices at the shops. Large retailers appear to gain the most, while small businesses might not enjoy the same reductions in fees, but could pay more for their banking services.
Proposals to regulate commercial cards and separate schemes and card processing are likely to be particularly disruptive. The consequences of legislative interference in interchange fee rates require much more careful examination than they have received up to now. The justification for action is not rigorous enough for an intervention with so many poorly understood risks.”