EuroMemorandum 2006

A Democratic Economic Policy Alternative to the Neo-liberal Transformation of Europe

This Memorandum was formulated on the basis of discussions at the 12th workshop of the working group “European Economists for an Alternative Economic Policy” (EuroMemorandum Group) on September 29 – October 1, 2006 in Brussels.

The text is available in English, French, German, Greek, Hungarian, Polish and Spanish.

Introduction: The neo-liberal transformation of Europe continues

1. Towards a more precarious Union – Recent economic and social developments
   1. Sluggish growth, persistent unemployment and large imbalances – Macroeconomic development
   2. More precariousness and poverty – and more wealth: Rising inequality in the EU
   3. “New Members Disease”: Macroeconomic catch-up without social improvements – The case of Poland
   4. Far from fulfilling commitments: Insufficient environmental protection
   5. Growing financial strains – Problems in European finance
2. Unimpressed by poor results and a growing critique – Economic and social policies
   1. Higher interest rates and lower public budgets – The spirit of macroeconomic restriction
   2. ‘Bolkestein’ in a new outfit – The spirit of deregulation in the new services directive
   3. Useful stocktaking but toothless policies – The spirit of hesitation in the fight against poverty
   4. Attack on minimum standards – The spirit of counter-reform in the planned revision of the working time directive
   5. Security via the military and back to nuclear energy – The spirit of power and environmental irresponsibility in energy policy
   6. Misguided ambitions at the cost of consumers – The spirit of uniformity in the Commission’s plans for housing finance
   7. Towards Neo-Mercantilism? – The spirit of aggressiveness in European trade policy
3. A democratic economic policy framework for a sustainable social Europe – Proposals for alternatives to neo-liberal transformation
   1. Macroeconomic policies for sustainable growth and full employment
   2. Shorter working time, better protection – A progressive reform of the working time directive
   3. Binding programs and more resources – Anti-poverty initiatives
   4. Social minimum standards, minimum wages and solidaristic wage coordination
   5. Efficiency and sufficiency: Policies for energy safety and sustainability
   6. Financial stability and social progress – A re-orientation of financial market policies
   7. A more equitable and development-friendly trade policy