April 14, 2009
Shadow economy in Europe looks robust
The underground economy in Europe is likely to grow this year while the mainstream economies falter, an Austrian economist said.
Friedrich Schneider of the Johannes Kepler University in Linz, Austria, said the so-called
shadow economy which relies on cash deals to avoid taxes, would grow up to 0.9 percent in Ireland, Britain and Spain this year, the EU Observer reported Tuesday.
tends to increase people's well-being,Schneider said.
It can be observed by watching construction sites, where there are more workers on weekends than weekdays, when those with jobs put in hours for off-the-books spending money.
The study covered 14 European countries, but even in those not included, the shadow economy is likely to grow
the same if not bigger, Schneider said.