To make the European Monetary Union work, a stabilization mechanism is needed. The solution Joerg Miroslav Beblavý & Vladimír Bilčík are proposing is a European Unemployment Scheme: a common Fund that re-insures countries that face economic shock or recession.
The private sector is often incapable to finance and sustain small firms, innovative companies and infrastructures because the private financial system is pro-cyclical. In this article, Stephany Griffith-Jones argues that developing National Development Banks in the EU, with clear mandates aimed at maximizing their social impact and not profits, would help to create a financial system that better serves the needs of the real economy and the society.
Who pays the cost of the energetic transition? The Yellow Vests movement has shown that either the energy transition will be socially fair, or it will not happen at all. This is why Sofia Fernandes and Thomas Pellerin-Carlin call for a Social Pact for the Energy Transition at the European level.
Time and again, the Polish nationalist government has been presented as „social”, implementing family-friendly policies and raising minimum wages. Malgorzata Kulbaczewska, editor of the portal strajk.eu, argues that PiS national-conservative vision of society is far from socially just. Indeed, according to her, Poland needs a reform of the tax system along with investments in infrastructure, education, and the health system.
Who should earn how much – and how to get there? Michel Husson argues that the growth of wages must be a stabilised share of macroeconomic productivity gains, it must be homogenous across economic sectors, and we must enable countries to keep up their price competitiveness. This can be reached by means of a European minimum wage system, a homogenisation of collective bargaining procedures and a convergence in the productivity of national economies effecting from an investment plan for catching-up countries.
Since the Great recession, housing has become an increasingly important topic in Europe. Affordable housing is a question of democracy, argues Julien Dijol of Housing Europe – and a crucial factor driving economic prosperity, social cohesion and local development. Today, housing policy takes place on the national and municipal levels only. Julien Dijol explains how EU institutions can play an “enabling” role in a European housing policy that works for all, and why the upcoming EU elections matter.
A “New Deal for Democracy” is the central proposal of DIEM25, competitor for the European elections 2019. Daniela Platsch, second-placed candidate for Germany, explans what this entails step-by-step: radical transparancy of decision making, legislative power for the EU parliament, a compulsory register for lobbyists, a Constitutional Assembly and a new, democratic, European constituion.
The social and labour market integration of migrants must happen in a way that strengthens social cohesion in the recipient communities. This has been ignored, as lawmakers all over Europe mainly focus on the management of the reception of the applicants for international protection. Taking the experience of San Martino in Rio (Emilia Romagna, Italy) as case study, Giovanni Calvellini argues that local currencies can help the integration and economic emancipation of migrants – at the same time as general social integration.
European countries diverge economically – not only by growth rates, but also in terms of the underlying structure of the economy. Philipp Heimberger and Jakob Kapeller argue that a policy mix of targeted public investment, wage-growth policies and financial sector regulation can lead to sustainable economic convergence among the EU’s Member States. These policies should specifically target countries of the “core”, the “periphery”, of Eastern Europe, and strongly financialised countries.
In order to make the European Monetary Union work, a stabilization mechanism is needed. The solution Joerg Bibow has been proposing for years is to create a “Euro Treasury”: a minimalist fiscal union run by the Eurozone member states aimed at funding public investment spending by issuing common debt securities. In his latest working paper he discusses in detail how to design it.