The EURO 2024 tournament is in full swing, with the second round of matches underway. The tournament, which is being hosted this year by Germany, is held every four years, much like the World Cup—at a time when players and fans are talking about more than just soccer. The feel-good event is dominating news in the region and giving fans a reason to cheer—even against an unsettled political and economic background.
EURO 2024
There are 24 teams that have qualified, and those are split into six groups of four teams each. The top two teams in each group advance to the round of 16, while the four third-place teams with the best records also reach the last 16.
(If that sounds off, it’s because it’s a relatively new format. Only 16 teams used to participate, but the new format debuted in 2016 and has been used since.)
Some famous names in the sport are making an appearance, including Cristiano Ronaldo (Portugal), Kylian Mbappé (France), Luka Modrić (Croatia), Toni Kroos (Germany), Robert Lewandowski (Poland), and Harry Kane (England).
Some other famous names—even those who play or used to play in Europe—are not in attendance. Thanks to the Copa America (a sort of EURO 2024 for the Americas), those names are still in the news this summer. Lionel Messi, who used to play for FC Barcelona and Paris Saint-Germain FC and now plays for Inter Miami CF, represents Argentina at the national level, while Christian Pulisic, who used to play for Chelsea FC and Borussia Dortmund and plays for AC Milan, represents the U.S. at the national level.
Going into the tournament, France and England were heavy favorites, but the hosts of Germany are currently sitting at the top of the table with more games yet to play.
Elections
The tournament hits just as many European countries—like France—are facing elections. The European Parliament just wrapped up elections earlier this month with the Group of the European People’s Party (Christian Democrats)—a self-described center-right group—winning the most votes. Key to their platform? Economics. They want “a united and secure Europe with economic strength and social responsibility.”
Elections are also happening at the national levels in Europe. French President Emmanuel Macron called for a parliamentary election after the EU vote—in which Marine le Pen’s far-right National Rally (RN) claimed a surprising victory. There will be a first round of voting in France on June 30, 2024, with a second round to follow.
Players Speak Out
After the elections, one of the most famous footballers in France spoke out about the results. Mbappe, the French captain, made his voice heard at a pre-match press conference, saying, “Extremes are at the gates of power,” adding: “I don’t want to represent a country that doesn’t correspond to my values or our values.”
He’s not alone. Teammates Olivier Giroud and Benjamin Pavard have all encouraged fans to vote. “The alarm bell has been sounded, we must mobilize to go vote,” Ousmane Dembélé said, while Marcus Thuram directly addressed the parties, asking voters to vote against the RN, saying, “Il faut se battre pour que le RN ne passe pas” (“We must fight so that the RN does not pass.”).
Taxes Are A Consideration
Earlier this year in France, the Finance and Economy Ministry announced that the country’s deficit as a percentage of the gross domestic product (GDP) grew faster than expected, hitting 5.1% (for comparison, in 2023, the federal deficit was 6.3% of GDP in the U.S.). That’s causing problems for the current government since, by rule, an EU member state’s debt may not exceed 60% of GDP, and the deficit—(the difference between government revenue and spending)—must be kept below 3%. France is over the limit, as is Italy. Austria, Belgium, Finland, Estonia, Hungary, Malta, Poland, Romania, and Slovakia may also face disciplinary measures under the rules.
As a result, various parties in France have put forth their tax proposals, including a scheme by the Nouveau Front Populaire, an alliance of left-leaning groups, to increase the number of tax brackets to 14 (compared with five currently) and to re-establish the wealth tax. (By comparison, the U.S. has seven tax brackets.)
Macron’s Renaissance party is not looking to raise taxes, instead focusing on budget cuts. Les Républicains want to lower taxes and cut spending, while the most recent victorious party, Rassemblement National, wants to replace the real estate tax with a financial wealth tax (a similar tax was previously abolished).
It will be interesting to see how that shakes out. EU member states must send spending plans to the EU for review by October of this year.
Realistically, most individuals tend to care about—and pay attention to—individual tax rates. And as you can imagine, those vary wildly by country. Here’s a look at how those countries with teams at the EURO 2024 measure up in terms of taxes:
(Tax data modified from central and sub-central top personal income tax rates and surtaxes, without reference to Social security contribution, as compiled by the Tax Foundation.)
Conclusion
There’s a lot of chatter about winning and losing right now. How that shakes out in both soccer and politics remains to be seen.
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