Europe needs a radical change of policy towards more investment

Monday, 2 December, 2013

The European economy will see modest growth of 1% in 2014. But Europe could boost its GDP growth to 2.5% if it invests in an ambitious green new deal worth up to €200 billion by 2020, according to a study unveiled today by Progressive Economy in Brussels.

The study, drafted by three well-respected economic institutes*, sets out forecasts and recommendations to offer an alternative perspective to the analysis published by the European Commission in their Annual Growth Survey.

The findings will be the subject of a debate between Commissioner Olli Rehn, social-democratic members of the European and national parliaments, and the authors of the iAGS during a two-day conference in Brussels on 4-5 December.

S&D Group president Hannes Swoboda said today:

“The study confirms that austerity policies have failed by any measure. The social costs have been disastrous, with soaring unemployment, poverty and inequalities. The estimate that 64% of the people who have lost their jobs within the EU could remain unemployed for the long-term is deeply worrying.

“An entire generation of young people could be lost and thousands of hard-working people left without hope. It is time for a radical change.

"Europe needs to break with austerity immediately and implement an ambitious investment plan to get back to sustainable growth. This is the only way for Europe to exit the crisis.

"I am convinced that higher public investment in alternatives to road transportation, in energy savings or in renewable energy – as proposed by the authors of the study – would revive Europe’s growth potential, reduce unemployment and bring a better life to European citizens."

An executive summary of the 2014 independent annual growth survey is available here:

The full programme of the Progressive Economy conference is available here:

http://www.progressiveeconomy.eu/content/progressive-economy-public-event-parliamentary

 

1st annual Progressive Economy conference

European Parliament – Paul-Henri Spaak building – Room 3C050

4 December 2013 14:30-18:00 and 5 December 2013 09:00-14:00

More information: www.progressiveeconomy.eu

Each year, three respected economic institutes (OFCE, IMK and ECLM) will publish an Independent Annual Growth Survey (iAGS), with an independent set of analyses and recommendations to provide an alternative to the European Commission’s own Annual Growth Survey, which now defines the economic policy strategies of the EU and the member states. The first iAGS was published by the three institutes in November 2012. Find out more here: http://www.progressiveeconomy.eu/content/iags-report

 

* Progressive Economy is an initiative of the S&D Group in the European Parliament which aims to generate a truly public and informed debate on economic policy at European and national, as well as global levels.