UK is leaving the EU. Donald Trump won the US presidency. Signs of a new world order
Brexit was the first major sign of the developed world’s rebuke to globalisation, and the rest of Europe may well be next. With Donald Trump being the 45th president of the USA, a wind of change is blowing. Protectionism is on the rise and with it comes slower growth, because of the friction it adds to the free movement of people, capital, goods and ideas as well as increased regulatory complexity.
In short, the reign of open markets and Western liberal democracy is giving way to something new. Generational certainties are no longer safe assumptions. So, while it’s important to see what conditions lie behind Brexit and to track the ups and downs of each of President-elect Trump’s various policy proposals as both might impact the global economic growth, it’s also important to keep an eye on the rapidly evolving big picture.
Check our deep-dive analyses:
- Is Brexit all about reshaping today’s interactions?
- Will Trump’s future policies reshuffle the world order?
The EU and Luxembourg gear up for transformation
Sensors, algorithms, Big Data, web-based platforms – we’ve entered an industrial revolution reigned by digital exchanges and interconnected objects. The internet of communication, energy and transports is already transforming how we interact, how we consume, how we move, how we live and how we do business.
The European Union is taking an ambitious step forward to tackle the potential challenges associated with the expansion of digitalisation and increased connectivity. The General Data Protection Regulation will become effective in January 2017, with serious impacts on businesses across the continent and beyond.
For the Luxembourg government, this is an opportunity to change the existing economic model into a more sustainable and interconnected one for future generations. The Third Industrial Revolution Strategy Study launched in November proposes concrete measures to achieve this goal. The country has become the first to make an official commitment nation-wide.
In addition, with the 2017 tax reform to enter into force in January, Luxembourg tackles corporate taxation, in an attempt to maintain the country’s attractiveness, while complying with international standards of transparency.
Read more in our dedicated articles:
- EU: Stronger data protection rules in 2018 (video)
- Third industrial revolution: what should businesses expect?
- Tax reform: what it is and what it could be