Adding long needed aggregate demand to Euroland

In: Blog

17 Mar 2012

By Andrea Terzi

Europe should hold another summit where all 17 euro nations agree on a general tax cut. This could be a VAT cut across the board, or an income tax cut, but it is imperative it is a progressive tax cut, i.e., boosting disposable income of low and middle income recipients.

At the same summit, Euroland governments will further announce that

  • The “lost revenue” will be collected through Eurobonds
  • Eurobonds will be guaranteed by the EFSF, backed by the ECB
  • The same summit should announce that more issues of Eurobonds will follow to “fund” an ambitious plan for upgrading the European communication, transportation and digital infrastructure.

4 Responses to Adding long needed aggregate demand to Euroland

Avatar

CHI SALVERÀ L’EUROPA DALL’EURO? | economia alternativa

March 30th, 2012 at 10:31

[...] strada meno soggetta a veti politici potrebbe essere questa. L’Europa dovrebbe tenere un summit nel corso del quale i 17 paesi dell’euro concordano un [...]

Avatar

Euro? danno o risorsa ?? | L'Eco di Vanzaghello

April 2nd, 2012 at 17:36

[...] strada meno soggetta a veti politici potrebbe essere questa. L’Europa dovrebbe tenere un summit nel corso del quale i 17 paesi dell’euro concordano un [...]

Avatar

Anonymous

May 22nd, 2012 at 11:48

[...] [...]

Avatar

A narrow path ahead for Europe: And it’s France and Germany, again | Mecpoc

March 11th, 2013 at 12:14

[...] PS: For a proposal on how to end the recession in Euroland go here. [...]

Comment Form