Europe’s hidden economy: how governments can bring undeclared work out of the shadows

Summary:

The so called ‘shadow economy’ refers to work and financial transactions that take place outside of the view of public authorities. Colin C Williams writes on the scale of this problem in Europe, noting that while the estimated size of the undeclared economy in the EU is around 18.4% of GDP, it is far larger in some eastern European and southern European countries. He argues that a mix of deterrence measures, incentives, and indirect controls offers the best route for governments to bring undeclared work into the declared economy.