Tax revenue (including social contributions e.g. PRSI) in the European Union fell to 40.5% of GDP (gross domestic product) in 2008 as the recession resulted in revenues falling faster than economic output. In the Eurozone, the ratio fell from 41.5% in 2007 to 40.9% in 2008. The growth of both tax revenue and nominal GDP, in absolute terms, slowed in 2008, recording the lowest increases in both EU-27 and EA-16 over the period 1998-2008.

An anonymous private donor is offering €500,000 for graduates in Ireland, to undertake a Masters at UCD Michael Smurfit Graduate Business School. The Aspire scholarships will provide an opportunity for up to 60 graduates, who would otherwise be unable to afford fourth level education, to attend the Irish business school. This fund was set up by the donor to support the Irish economy.

Japanese manufacturing sector in May improves at fastest rate in forty-four months. At 54.7 in May, up from a revised figure of 53.8 in the preceding month, the seasonally adjusted Nomura/JMMA Purchasing Managers’ Index (PMI) pointed to a solid improvement in Japanese manufacturing sector operating conditions that was the fastest since September 2006. Meanwhile also today, government data showed that industrial production rose 1.3 per cent in April from March, which had recorded a 1.2 per cent rise.

A group led by Centerbridge Partners prevailed in an auction to take Extended Stay out of bankruptcy protection, offering nearly $4 billion to clinch the purchase of the distressed hotel chain.

Markets news on stocks, currencies and commodities; Irish new car sales in May overtake annual unit sales for the full year in 2009.

May survey data from Markit signalled a fifth successive monthly fall in Eurozone retail sales. The rate of decline continued to ease, however, and was the weakest seen in 2010 so far, reflecting the moderating influence of a further rise in French sales. The headline seasonally adjusted Eurozone Retail PMI (Purchasing Managers’ Index) edged up to 47.4, from 47.2 in April. Anecdotal evidence suggested that consumer caution persisted as the wider economic recovery remained uncertain, although a number of retailers expect the football World Cup to provide a temporary boost to demand.

Foxconn, the world’s largest electronics contract manufacturer, which is owned by Taiwan’s Hon Hai Group, said on Thursday that it is planning to raise wages for its workers in China by about 20 per cent after at least 10 workers have died this year from apparent suicides — half of them in May.

Principal news stories from the Irish Independent, Irish Times, Irish Examiner, Financial Times and New York Times.

In Q4 2009, the number of persons in employment (seasonally adjusted) in the EU-27 fell to 220.8 million, 0.3 % less (-0.7 million) than in Q3 2009 according to labour market analysis by Eurostat, the European Union’s statistics office. The fall in the fourth quarter was the sixth quarter-on-quarter reduction in a row. Since the peak reached in Q2 2008, employment has fallen by 6.0 million persons.

The renowned Depression era British economist John Maynard Keynes gave a lecture in Dublin in April 1933 on the day President Franklin D. Roosevelt announced that America was abandoning the gold standard  - - the 1913 Federal Reserve Act provided that at least 40% of currency notes issued had to be backed by gold.