It's still very focused on GDP growth; but if the company keep not sending back any cash whether as taxes or wages; it'll still not address anything of the economy problems due to the lack of consumption for lack of a disposable income.
The money goes mainly one way right now (from citizens "consuming" and tax payers to corporations as sales/tax breaks/subsidies; where it stays) a bit like the sand in an hour glass, which is why it's not really viable. Company can earn as much more as they want (growth); if they STILL don't send much back, it'll just accelerate the emptying of the rest of the economy. I think i can say companies weren't really focused much on "trickle down" aspect since it's inception in the 80; and didn't exactly rose up wages every time they had record profits.
Otherwise there are certainly interesting ideas in that document (banking union, deepening the single market). I wonder what the other countries will think of it ?
A macroeconomic stabilization mechanism is needed as countries under tight fiscal constraints may not be able to smooth the cycle and to deal with increases in unemployment in case of asymmetric shocks. Moreover, monetary policy may prove insufficient if the shock is country-specific.
Then i'd use the occasion to push french agenda and ideas (:P) and our suggestions of a common unemployment system Eurowide (possibly funded by contributions of country depending on their size of course. France could potnetially be a net contributor if that can reassure others of our best intention in that) : https://www.reddit.com/r/europe/comments/471qhf/the_italian_proposal_for_a_shared_european_policy/d09l5ow
Sharing the responsibility for the management of external borders between the EU and the relevant Member states would represent a powerful response. Financial and human resources from the EU should complement national policies for rescue operations, administration of hotspots and first integration of refugees reaching the European frontier. These are European common goods that require EU level involvement.
Hmmm it's true alright
The scope of the new policy of a shared management of the EU external frontiers requires different funding sources and would justify the recourse to a mutualized funding mechanism which could entail issuance of common bonds.
In short, Italy wants us to emit a few eurobonds and use that money to help funding the meditteranean border operations and trying to address the libyan problem
The implementation of a common unemployment benefit would be a first step in developing a stabilization function to cope with asymmetric shocks and help in building the necessary trust for more ambitious initiatives in the future
Once again totally agreed at my own concerned citizen level. Solving or at least address the unemployment problem in eastern europe and poor countries like spain or greece would also help reducing the flight and brain drain from those bankrupt countries toward richer western ones. (Translation for our UK friends; It's cheaper to toss money at poles for them to stay in poland !).
These functions could be managed by a Eurozone Finance Minister
That would be reasonable but the condition would probably be "not a german minister then" for a lot of people :x Germany has been accused regularly to play only for it's industry (especially in light of that recent tank sale scandale in greece...) But once again i'm willing to think that we french would (should) be net contributors toward some of those mechanisms. It's only fairer since we have one of the biggest EU economies.
In the long term, the Monetary Union should be equipped with a fiscal capacity tailored to the tasks of promoting investments and smoothing the cycle.
Yep, funding all that means we'll have to finally start collecting all those evaded taxes to finally start funding our countries and not let everything rot to hell like it did in eastern europe.
Rules must be designed so as to reward compliance and discourage uncooperative behavior (i.e. prevent moral hazard).
Good policy could be rewarded with more investments and better rates. Similarly, fraud could potentially be deduced from EU subsidies if a country becomes really uncooperative.
Rebuilding trust among Member states, and defusing national prejudices are the principles that should guide the actions of European governments.
Exactly !