Economic Policy for a Social Europe: A Critique of by Jörg Huffschmid

By Jörg Huffschmid

This ebook poses a critique of neoliberal financial polices within the european and suggestions for choices. The e-book argues that the industrial weak point of the european is the results of the very restrictive financial coverage of the Union and so much member states. The e-book advances from a finished critique of macroeconomic, social and structural guidelines in the direction of a concrete notion for a democratic eu social version according to the targets of complete employment, welfare, social fairness and ecological sustainability.

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Even if it is accepted that the budget should be balanced over the cycle, there is little reason to think that the extent of the swings in the budget position will be similar across countries. What reason is there to think that a swing in the deficit to a maximum of 3 per cent of GDP is relevant for all countries? Countries will differ in the extent to which their GDP varies in the course of a business cycle and in the extent to which the budget position is sensitive to Macroeconomic Policies: a Self-defeating Regime 35 the business cycle.

On the contrary, the completion of the Single Market programme in 1992 coincided with a recession. 10 The US intervention as peacekeeper in a zone so close, historically and geographically, to the EU put the seal on European weakness. Nor did the Single Act do anything to protect European currencies from speculative attacks that had become sharper because new technologies and financial deregulation had boosted the process of globalization of finance. However, although the Single Act clearly failed to meet the promises which were made for it, it did permanently alter the balance of power between the EU and the member states in the economic domain.

And K. Coutts, ‘De-industrialization and the Balance of Payments in Advanced Economies’, UNCTAD Discussion Papers, No. 170 (May 2004). Rowthorn, R. and J. Wells, De-industrialisation and Foreign Trade (Cambridge: CUP, 1987). , Interim Report on the Establishment by Stages of Economic and Monetary Union – ‘Werner Report’ (20 May 1970), Bulletin of the European Communities, Supplement 7/1970. 1 Introduction This chapter begins by outlining the road to monetary union, and the steps along the way to monetary union with the formation of the European Monetary System and attempts to secure exchange rate stability between European currencies.

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