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New sources of revenue could easily be created by simply legalizing things that are uselessly outlawed now, such as drugs and prostitution.

Whatever one thinks of them, both are available to everyone, but both are also forbidden in most countries. Fighting drugs costs a lot of money, which only drives the price up--thus increasing the incentive to make them readily available.

If the state gave drugs away for free, it would not earn an income. But it would immediately achieve substantial savings on enforcement. If it charged a small fee, the state would earn some income--though that income would be too small to induce illegal sources.

The point is that there are so many inefficiencies here in Europe, that it would be very easy to reduce governments´ costs and improve productivity.

Politicians often do not even have the competence (let alone the incentives!) to tackle structure problems. And the system reacts to short term emergencies, rather than on long term planning. There would be much to learn from China on this. And there would be a dire need for competent people to devise a long term plan--not guided by obsolete ideology, as so often is the case.