The Great Recession has left eurozone's institutional design in evidence. Unfortunately, austerity glutes and inaction of ECB are new image that many Europeans have today in Brussels. The European Commission, led by Jean-Claude Juncker, a conservative, and with Economy Commissioner Pierre Moscovici, a Social Democrat, has regained spirit of founding fars. It is again institution that proposes measures to advance European project.Learn More
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They have recently proposed converting ESM European fund into an institution with capacity to, in addition to rescuing countries, inject money into European banking resolution mechanism to prevent furr episodes of financial fragmentation in Europe. They also propose that it can put in place fiscal stimulus plans in asymmetric crises that affect a single country or group of countries but not whole area. and to issue Eurobonds to finance mselves. It would not be a purely federal body like ECB, but it would certainly be a breakthrough on what we have today.
Anor proposal that is already being realized is to institutionalize Eurogroup and appoint a permanent president. The Prime Minister of European economy is Mário Centeno, Minister of Finance of Portugal, Ph.D. in economics from Harvard and has developed his professional career in Bank of Portugal. This summer he was in course of Menéndez Pelayo Social Democracy in 21st century and gave a paper that confirms that re is life in Europe after crisis.
Rye began by criticizing excesses of austerity. Ideas are free, but facts are unique. From 2010 to 2013 retail consumer sales in eurozone fell by 5% and we were only area in world to destroy jobs. Since 2013, Brussels put an end to austerity and ECB emulated to Fed, retail sales have grown by 10%, and Europe has recovered employment level of 2008, pre-crisis one.
The new president of Eurogroup demonstrated that criticizing austerity glutes is compatible with defense of budgetary stability and need to reduce public debt to reduce financial vulnerability, improve country ratings To enjoy lower interest rates that allow companies to increase investment and create jobs. It also defended need for flexible labour market rules for European companies to compete and generate quality jobs in global technology era.
He explained that se are conditions necessary to achieve objectives of social democracy: full employment, reduction of inequality (for example, with rises of minimum wage) and equal opportunities with a quality public education. It is key that a social democratic economist and of South recover flag of stability so that Europe continues to progress and to break clichés in north and between left more sleepless.
Europe needs leadership and Europeans we have to wish Mário Centeno force to accompany him.