I have been warning that raising taxes is DEFLATIONARY because you are reducing the net disposable income. Governments simply cannot get that through their head. In Romania where protests over political corruption have been unfolding, the government revealed its plan to try to comply with EU austerity raising they hope 10 billion lei ($2.5 billion US) in extra revenue. The market response has been a dramatic crash in Romanian stocks as they plunged and bond yields spiked the greatest in the past several years.
This is where the austerity is destroying the European economy. Romania is attempting to reduce its budget deficit that is pushing the country beyond critical EU thresholds. This new tax will include a tax on the banking industry. This is having an immediate knee-jerk reaction where foreign investors are bailing out. Using global warming as an excuse as in France, new taxes on energy and telecommunications companies are included. The government is also reducing social benefits in the retirement system also due to the pension crisis which is worldwide.
This is all part of a Global Contagion is the COLLAPSE in Confidence we see into January/February 2019.