Sunday, January 3, 2021

Revenue sharing in Europe

 Fix the problems.

Here we play nation against population.  We split the sharing budget between the two, and let the limit one per budget year. But we need the second stream, who represents population?  Simple enough, each nation can negotiate within the EU parliament on one side and national heads on the other. Both sides must agree.

Let's not call it legislation, rather the usual annual sharing agreement needed to balance an imbalanced value net and no one really is at fault. I means, this goes back a thousand years or more, there is no way on can blame monetary economies of scale on any given nation over there.

In this case, Germany and Greece tend to agree, mostly to the nations and limit the value. Greece does well.  Germany pays a small tax, mostly to Greece.  Italy is more toward the center of gravity, their value chain is balanced either way, they want high money and tilt it either way.

Like the USA, the revenue sharing budget is quite small and hedges the known unknowns. They will gain back in productivity. These are value added networks, and we all know it. They are hard bound, and they can't get to the Markov point, but we can find the smooth path around. 

Adn again, this is the same thing as the telecommunications auctions, should be the same market math.

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