Business insolvencies started to increase again in Western Europe during 2022. In the United Kingdom and Sweden, where growth has deteriorated since the start of 2022, these insolvencies were even higher than their pre-Covid level, with a more significant increase in retail and wholesale trade. In the Eurozone, insolvencies are still below pre-Covid levels, but the current tightening of credit conditions raises the risk that they will reach those levels during 2023. This also applies to France, where there is a risk of wider negative consequences, in particular because these insolvencies take the form of liquidations to a greater extent than before Covid.
Since 2005, the emission trading system, also called carbon market, is at the heart of the European strategy to reduce greenhouse gas emissions.
This device that covers around 45% of carbon emissions is based on the simple principle of "polluter pays".
The entities concerned, mainly the most polluting industrial sites, but also the intra-EU airlines, are given emission allowances by public authorities. These are tons of carbon which they can emit into the atmosphere every year.
When they reach the limit, they have to obtain additional rights on the markets or bilaterally. This has a cost. So it is a financial incentive to adopt less polluting production methods based on renewable energies for instance.
The public accounts for 2022 are progressively unveiled by the national authorities, and one observation is emerging for Southern Europe countries (Spain, Portugal, Greece): public finances improved again significantly last year.
