Jan 12, 2018 in Research

The economy and business across Eurozone

To start with, according to Eric Phanner’s article, the music industry in all parts of Europe faces various challenges. This has triggered strikes, sit-ins as well as protest among sellers (“The Move Online” 3). In Limerick, Ireland, for example, employers of HMV record stores held sit-ins in quest for unpaid wages after the company filed for protection of bankruptcy. Workers of Virgin Megastore in France went on strike after the store faced closure. The declining trend in the entertainment industry across Europe is worrying policy makers since many people will lose their jobs. Of late, online sites are likely to replace businesses which are physically cultural (“The Move Online” 3).

Of course, every time the threat of jobs' shortening occurs it results in disobedience actions. Nonetheless, when there are the licensed copies of music, DVD etc. there will always be the pirated ones. The problem has to be solved on the state level.

As James Karter writes, finance ministers across Europe to elect their new leader met in Brussels. This was with the aim of rescuing Cyprus which requires bailout. The Finance Minister of Denmark, Jeroen Dijsselbloem, is expected to be elected. He would play the coordination roles during decision making. This is a matter which is relatively controllable unlike in 2012, where several crisis meetings were held in order to address various problems in Eurozone.

I am not sure if wealthy foreign depositors will take own losses to help Cypriot banks while the processes of recapitalizing and restructing are held. Nevertheless, such a step is necessary. 

Meanwhile, France has proposed internet tax as pointed in another Phanner’s article. This is aimed at raised its revenues following a growing concern that most internet companies among them Google, Facebook and also Amazon do avoid paying tax. The organizations are able to collect personal details from the users comprehensively for advertising purpose. This leaves these companies the sole beneficiaries. A company like Google can generate over $30 billion annually in revenue generated through advertising yet it does not pay taxes in France.

Even if the French policy makers’ plan for 75 percent income tax rate for the Internet giants had been discriminatory this would not absolve the latter  from responsibilities of getting rich on the state’s cost without any compensations to the country and its citizens.

Jonathan Hutchison in his writing piece in The New York Times indicates that Mega Limited has opened another online site, which can now compete with Dropbox, as well as Google Drive. In terms of price per month in relation to the amount of data storage, Mega is far much better compared to the two sites. Several challenges confront Mega Limited. Among them is the court battle for its director, Mr. Dotcom in both the United States and New Zealand.

To my mind, if this innovative approach to a file-storage will survive in the market competition and numerous legal battles it becomes widespread and the most popular around the world.

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