A growth and employment strategy for Europe. Stability and growth – the missing link
A more intelligent economic policy must start with an understanding of what went wrong; that is why our alternative strategy has three fundamental aims:
- to achieve a smart fiscal consolidation, which restores confidence, taps new revenues, protects essential investment and looks for savings in those areas of the budget which cause least damage to aggregate demand and inflict least social pain
- within a medium-term fiscal consolidation strategy, to implement a coordinated European Investment Strategy, focussed on modernising infrastructure, investing in human capital and laying the foundations for a smarter, greener Europe
- to address the problems which caused the crisis, such as regional divergences in productivity, and a growing imbalance between wages and profits, which led to excessive dependence on credit to maintain aggregate demand.