The Covid-19 crisis highlights the unescapable weaknesses of the grounds of the European project. History is calling us, asking for inevitable changes for a better future, leaving behind what has already been proved not to work.
For this reason, we propose some measures which face the inconsistencies of the institutional and economic system of the European Union, both for the most effective response to the emergency and for a medium-long run horizon.
Firstly, for the immediate reconstruction of the countries which have been hit the most from the crisis we propose what follows:
- A huge intervention of the European Central Bank aimed at buying debt titles of the member States on the primary market and monetise them, together with the constitution of a Recovery Fund financed through the emission of Eurobond.
- Controls on capital flows which neutralize speculative behaviours, as predicted by the art.65 of the TFEU.
- The regularisation of migrants in order to ensure their access to health care, regardless of working or income status.
When the emergency status will be over, we strongly call for:
- Debt mutualisation forms and relative monetisation as a consolidated practice of economic policy, aimed to increase the European Union budget.
- The employment of the common fiscal leverage both in the repayment of the European debt and to increase the EU budget. In particular, we suggest the application of the following instruments:
o A tax on digital services, as revised by the European Parliament resolution of 13 December 2018. Once it has been implemented, the medium run objective is to make it progressive.
o A progressive wealth tax at European level on the “wealthiest 1% “.
- The European Union driving the ecological conversion at global level, implementing the European citizens’ initiative “Stop Global Warming” in all its details.
- A radical review of the European management of the migration issue providing for appropriate financing and the respect of human rights.
- The activation of a European basic income.
- The leading role of the Confederation of the European Trade Unions in making national labour markets homogeneous by a lower level of flexibility. Moreover, a model based on concertation action, which provides the union presence in corporation programming plans, has to be implemented. The purpose is to reduce wage inequalities, either gender-based or not, and to stimulate the productivity via technological innovation.
- The adoption of a European Social Standard which entails controls on capital movements, and of goods when necessary, for those member States which apply social, fiscal and environmental dumping.
- A conversion plan in the war sector for civil purposes, activated at Union level without job losses.
- Facing a higher fiscal and monetary integration, the placement of the European Parliament at the centre of the institutional triangle, being representative of Parties with a truly European dimension.