Author: Alfonso Iozzo
Date: October 2011 

In an intensely evolving global context, in which emerging countries are beginning to take the lead, the European Union must be successful in taking part in the new world economic cycle by opting for a rational and efficient use of natural resources (food, energy) and transforming its economic and manufacturing system in a fair and sustainable way.

The proposals put forward in this difficult period of the European economy have often appeared to be going in the right direction, but the fact of being limited to individual nation states tends to undermine their effectiveness, the chance of achieving them and their economic feasibility.

It is essential to initiate a “European plan” amounting to some €300-€500 billion spread over three to five years for re-launching investments. This would involve the European Investment Bank (EIB) for examining and managing the actions, and be made via an “Asset Fund” that would maintain ownership of the investments made, in order to make resources available for the new generations – with a return that would be deferred.

The plan should run alongside a re-launching of the European Fund for financing the effects of globalisation on labour, using the annual €30 billion in proceeds from the financial transaction tax.

The “Plan” should lead to creating at least 20 million new jobs, halving the current unemployment rate.

In this situation, the European budget should, by the end, be funded solely by its own resources in which the “carbon tax”, the financial transactions tax and the new European VAT should be essential component parts.

If difficulties are found in enrolling all the member states in the Plan, it would be necessary to provide the possibility to begin with a group of member countries, putting in place reinforced rules on cooperation, especially by the Euro Group and those States that want to take part.


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