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CSD supports the European Platform Tackling Undeclared Work, which enhances cooperation between EU countries, bringing together relevant authorities and actors. In a recent study on tackling undeclared work and hidden economy in Southeast Europe, CSD in cooperation with the SELDI initiative and University of Sheffield Management School, uncovered that hidden economy in SEE remains wide-spread; it perpetuates informality, which is linked to corruption, and denotes a substantial gap between formal and informal institutions. This gap is due both to underdeveloped formal market institutions, and also to the lack of coherent enforcement of rules, often related to corruption. The sustained high-levels of the hidden economy in SEE, low trust in public institutions and, in some cases, ambiguous national identity, has resulted in changes in tax morale and lower revenues for governments.

 

 

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