We do not accept inequalities as inevitable. They are caused or exacerbated by specific policy decisions in our economic governance, labour market institutions, tax systems, and the way the financial sector is allowed to operate.
Inequalities can be overcome, but change and reform are needed at national and European level. This shall be our priority in order to make substantial change towards a more prosperous and inclusive society.
2. We want to change the economic approach in Europe. Austerity policies have put enormous stress on economies, societies and governments. They have increased inequalities, unemployment levels and poverty rates. These policies brought about the closing down of businesses, the dismissal of employees, the shrinking of their basket of daily goods and reduced public services.
3. For all these reasons, we want to put an end to austerity-only policies. Our economic growth model combines responsibility, flexibility and investment. These three dimensions are mutually supportive and key for driving both economic growth and social cohesion. Public finances have to be managed in a responsible way, but responsibility has two sides. One is to manage public budgets responsibly to keep them sustainable. The other is to keep adequate social security provisions in place and provide for society’s future needs with well-targeted investment in human capital, strategic and social infrastructure. Neither of these elements can be overlooked.
The existing European budgetary and fiscal rules are not geared towards these objectives. Member States must be allowed to adapt their policies and reforms according to society’s needs in a timely manner. Managing public spending well does not mean focusing only on spending figures, but must also look at the quality of spending and at how inclusive growth can be supported in a sustainable way. Unfortunately, the conservative response to the financial crisis was to focus on monetary stability exclusively, making social and political stability merely a cosmetic aim.