Europe needs a new economic governance reform tailored to modern economic conditions that puts the sustainable development of prosperity and well-being at the centre.
The minimum requirements for a reform are:
- Assets and liabilities should be treated symmetrically – for example, by means of a golden investment rule whereby the permissible limits for new debt are only controlled minus the net public investment.
- The existing elements of flexibility should be applied more generously in practice so that debt reduction is not at the expense of other important goals – such as full employment or climate protection.
- At the European level, more resources must be made available to contribute to effective fiscal and economic governance.
- Cooperation between Member States on common objectives should be strengthened.
- Decisions need to be taken more democratically and transparently, because this is more likely to take into account the interests of the majority.
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