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Beyond Austerity A European Recovery Policy Is Feasible

Author

Listed:
  • Riccardo Fiorentini

    (Department of Economics (University of Verona))

  • Guido Montani

    (University of Pavia)

Abstract

The European Council of 8 February 2013, with its decision to cut the EU budget to 1% of GDP, made a great mistake: it aggravated the recession of the European economy and, tacitly, admitted that a European recovery policy is impossible. In this paper the Authors show that with an annual EU budget of only 1.19% of GDP, a recovery plan of 2% of GDP is possible, in order to fill the gap in European aggregate demand for investment and consumption. The twofold aim of this exercise is to show that European parties and leaders can put forward an alternative economic policy to austerity and that European fiscal imbalance is one of the major causes of the crisis of democracy in Europe

Suggested Citation

  • Riccardo Fiorentini & Guido Montani, 2013. "Beyond Austerity A European Recovery Policy Is Feasible," Working Papers 06/2013, University of Verona, Department of Economics.
    • Handle: RePEc:ver:wpaper:06/2013
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    References listed on IDEAS

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    Cited by:

    1. Riccardo Fiorentini, 2015. "Neoliberal Policies, Income Distribution Inequality and the Financial Crisis," Forum for Social Economics, Taylor & Francis Journals, vol. 44(2), pages 115-132, August.
    2. Alberto Botta, 2014. "Structural asymmetries at the roots of the eurozone crisis: what's new for industrial policy in the EU?," PSL Quarterly Review, Economia civile, vol. 67(269), pages 169-216.
    3. Alberto Botta, 2014. "Structural Asymmetries at the Roots of the Eurozone Crisis: What’s New for Industrial Policy in the EU?," Economics Working Paper Archive wp_794, Levy Economics Institute.

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    More about this item

    Keywords

    Recovery; European Union; Federalism;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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