By: Alicia Green

Alicia Green — Mon, 19 Nov 2018 14:13:57 +0000

I agree with most of your points. Can you say something more on your conclusions, “As an example public investment could be given a special status and also to elaborate on a proposal that leaves greater degree of fiscal independence to the individual countries combined with a cyclical
stabilization mechanism at the European level.”?

By: Arturo Hermann

Arturo Hermann — Fri, 26 Oct 2018 11:01:41 +0000

I agree with most of your points. In my humble opinion much needs to be reformed at the EU level and Maastricht parameters. The real problem, however, is that the attainment of such parameters is supposed to be realised, by the prevailing neo-liberal stance, through cuts in public spending.
This is wildly unrealistic as public spending plays a central and irreplaceable role in providing public goods and maintaining effective demand. If this requires higher taxation, this can be realised by taxing more higher incomes and rent, while providing incentives for small and medium enterprises. Hence, I would stand for a smaller public sector’s deficit, also on account of the so-called Haavelmo’s theorem according to which also a balanced public budget has expansionsry effects.

Comments on: Institutional challenges and alternatives: Revision of fiscal rules in the EU

By: Alicia Green

By: Arturo Hermann