FEPS' Notice Board

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EU economic governance, time for reform! FEPS signs a call for a green, just and democratic European economy

• debt
• economic governance
• fiscal rules,

The European Union must be empowered to live up to the social, climate, and environmental challenges of our times. For this to happen, Europe cannot just return to the pre-covid EU economic governance framework.

We are pleased to announce that FEPS has signed the Manifesto for a green, just and democratic European economy promoted by the group of civil society organisations, think tanks, and trade unions FiscalMatters. We unite our voice with those of 273 organisations and academics from all 27 EU countries calling for fundamental reform of the EU’s fiscal rules.

“The aim of economic policy across Europe must not be to simply reduce debt” states the Manifesto: “The economy needs to serve the reduction of socio-economic, intergenerational and gender inequalities, the realisation of social rights and the protection of climate and environment”.

At a time where we need to complete the recovery, boost EU capacity in several key industries and provide energy security, the old complex rules would translate into sub optimal levels of investment.

The strict Maastricht fiscal limits that cap member states’ public debt and deficits are no longer fit for purpose. The European public sector must be put in place to respond to the different shocks that are affecting our society and should have the means to steer prosperity and development to ensure social and environmental sustainability.

Europeans don’t need a new austerity season: it would jeopardise the recovery and annihilate the great leap forward made thanks to the Recovery and Resilience Facility.

Europeans need reformed fiscal rules consistent with agreed EU social, climate and environmental goals, a stronger social dimension of economic governance, a new approach to ensuring member states’ debt sustainability capable of taking into account national contexts and avoiding self-defeating austerity.

The outcome of the debate on European economic governance will have crucial implications for our societies, as well as for the well-being of our planet and the next generations of Europeans. We cannot compromise on Europe’s future.