European Greens issue declaration on economic crisis

November 18, 2011 in International Greens

From the European Green Party:

Eurocrisis: Green Paris Declaration adopted

European Green Parties representatives adopted in Paris a 12-points political proposal to step out of the current financial, social and economic crisis affecting Europe, and a roadmap for the refounding of the European project: European Greens are convinced that the European project needs to find a new sense of direction and purpose.

These crises are eroding social cohesion and leading to political disintegration of the continent, driving us to irrelevance in the 21st century. Any scenario leading to the break-up of the Euro-zone, which would be the first step of the political disintegration of Europe, is unacceptable to us. Conversely though, any enhanced political integration of the Euro-zone cannot lead to the crystallization of a two-speed Europe”, said Philippe Lamberts, MEP and co-chair of the European Green Party.

The battle for European democracy is not over. The alienation of public opinion towards the EU is growing because of the 27 member states’ inability to produce sustainable and progressive common solutions to the multiple crises impacting the citizens”, said Monica Frassoni, co-chair of the European Green Party. “The existing “governance” mechanism is wholly inadequate. But the increasing weakening of the common institutions in favour of an old fashioned Directory lead by ‘Merkozy’ will do nothing to improve the situation”.

The full text of the Paris Declaration is available at http://europeangreens.eu/congress/?page_id=417. Our proposal involves:

  • Make the Greek debt-burden sustainable;
  • Make the European Financial Stability Fund (EFSF) (and future ESM) an effective backstop;
  • Recapitalise the European banks;
  • Rebalancing the austerity-only approach;
  • Strongly re-regulate Europe’s finance industry;
  • Develop a comprehensive European tax strategy, including active fight against tax evasion and limiting avenues for tax avoidance;
  • Establish a European Monetary Fund;
  • Make the macro-economic surveillance framework operational and more balanced;
  • Make the EU budget an instrument of economic policy, which will create a strong and relevant European Treasury.
  • Launch a Green New Deal for Europe including:
    - Putting the EU2020 targets on an equal footing with the stability and growth, and financial targets;
    - More effective pricing of CO2 through a move to a 30% GHG emissions cut by 2020;
    - Imposition of carbon stress tests to financial institutions, the introduction of climate risk as systemic risk into legislation, the promotion of green indices that indexed-based funds can refer to, the development of green banking, with tax incentives where appropriate;
    - allowing the EIB to issue green bonds in order to foster green investments; Mandating public pension funds and incentivising private pension funds to allocate a proportion of their portfolio to green investments and companies.
    -Implement an energy transition to renewable energies, out of nuclear and fossil-fuels.
  • Co-decide key economic policy guidelines;
  • A Convention for a new Europe.

2 responses to European Greens issue declaration on economic crisis

  1. I fail to see anything that directly relates to one of the primary problems of the Eurozone that certian nations, Greece, Italy, ect, used the economic stability of Germany that transferred over to the entire Eurozone and allowed those governments to borrow at lower rates than they should of been able to and borrow much more than they should of been able to. Most of it just seems to be blame the private markets and ignore the failings of those governments.

  2. Private companies certainly did play a large role in enabling the behavior that led to the crisis, such as when Goldman Sachs arranged a highly dubious derivatives deal for Greece in 2002 (http://www.spiegel.de/international/europe/0,1518,676634,00.html ). The basic question in Europe, as in America, is whether we want to inflict widespread suffering on regular people in order to atone for the sins of economic and political elites. The US has also taken advantage of its position to go on huge credit sprees. Under Presidents Reagan, Bush, and Bush Jr., the national debt increased by no less than $10 trillion. When the next financial crisis hits, are we going to allow the US to default, thereby cratering the national and world economy and putting millions out of work, because of the behavior of previous administrations? We could make arguments for and against the moral propriety of such a course of action, but that doesn’t change the fact that it’s not a productive approach to the immediate problem. In my view, the real moral problem is that the same economic and policy elites that caused the crisis are being allowed to handle it, and almost all of them are trying to inflict widespread pain on regular people to cover up the wrongdoing of the elites. The Green Party’s program takes the opposite approach, which in my humble opinion is exactly what we need.