As the star economist Piketty Europe wants to save

Thomas Piketty wants to save Europe. This is the claim of the French Economist, in a Manifesto he wrote, published in several European Newspapers today (collects"Manifesto to save Europe from itself"). Signed by 50 other people from various European countries have it, but mainly from France and Germany. By the year 2013 published book "capital in the 21st century. Century" was celebrated economists Piketty, in the meantime, international like a rock star. The theme of this book and his research, especially the strong growth and cementing of inequality.

The Manifest does not appear to happen today. France, where Piketty lives and works, is of the violent protests of the so-called yellow the West shaken. To feed profit at the end of movement is above all an expression of the dissatisfaction and disappointment over the policy of nearly two years ago as the great hope for France and Europe elected President, Emmanuel Macron. Through his performances and his politics, the French most take their President increasingly as a socially cold and elitist, true – as a friend of the Rich. From the former departure of the spirit, and its popularity is nothing left.

Trouble with Italy and the reform backlog in Brussels

At the European level, no solution is in conflict to the government finances of Italy. While the European Commission insists on compliance with the budget rules, will the promise of the populist government in Rome to its Output to hold.

Also, the fact that in the current week, the heads of state and government of the EU-debate countries on Reform of their institutions, is likely to have motivated Piketty for today's publication of his Manifesto. In the run-up has already been considered by the Finance chiefs of the Euro area countries, with possible reforms, proposals for the Meeting of their heads. But once more it became evident that to be expected in view of the differences between the countries, no significant breaks are.

Piketty goes much further than the politicians

The reform ideas outlined by Piketty in his Manifesto, going far beyond the debate to the politicians. On the one hand, he calls for four new taxes to be levied in Europe: a corporate tax for large corporations, a tax for big earners (with annual income of more than 200’000 Euro), a tax on assets of more than one Million euros and a levy on carbon emissions. Separate rules should not prevent that money from the richer member countries to the poorer to pay, and the Budget thereof is greater than 4 percent of the total EU gross domestic product.

The new Europe-wide source of money is to be coupled according to Pikettys Manifest on the same level, but also with a new democratic decision-making. Created a kind of new European Parliament, which is set to 80 percent of parliamentarians of the member countries and 20 percent from the previous European Parliament members. The proportion of national parliamentarians can be according to Piketty, but also small, about 50 per cent. With the new Institution, the democratic legitimacy of the EU is to be increased. Thus, any national election would also automatically also to a European election. This new Parliament should ultimately decide on the use of the funds, which are charged with the new taxes. All the previous institutions of the EU wants to leave the Manifest but without prejudice, so that, according to Piketty, no Changes to the existing Europe agreements necessary.

Lack of "social Ambition"

His initiative founded by the French Economist, that Europe could no longer afford, with fundamental reforms is offered. The show is the growing popularity of anti-European politicians in many countries, and the future Brexit. It is missing the continent of a social Ambition. Pikettys analysis corresponds to the of other Economists. So has recently pointed out, the Italian Economics Professor Guido Tabellini in Zurich, and missing insight of the European elites for the need for more protection for the citizens of Europe is one of the reasons for the waning of enthusiasm towards the European project. The favorite projects of the Euro politicians, such as open borders, open markets and the technological progress made, however, for uncertainty and exposed large parts of the population, a major existential risk.

The chances of Pikettys proposals can be realized, but remain extremely low. For one, they are not completely new. Already in 2014, the Economist has published a "Manifesto for Europe" – some of the same signatories. Piketty wanted to build on the reform proposals of the German Economists of the so-called Glienicker group, but significantly more. Different than those of the Frenchman called for already at that time, the collection of taxes at the European level. In that Manifesto the idea of a new Parliament, which consist in part of members of existing national parliaments and the existing Europe should complement Parliament was also included. None of the proposals were ever seriously considered by European leaders in the recital.

Modest reform ideas are highly controversial

And this does not is also likely to be up-to-date. The of the Finance Ministers of the Eurozone have already debated reforms to go much less far, and countries are among the member of the already highly controversial. The best chances have all the ideas to a strengthening of the banking Union, or to an expanded role of the existing bailout Fund (ESM). Of a new representation of citizens or parliamentarians or Europe-wide taxes collected for the speech, but it is not. (Editorial Tamedia)

Created: 10.12.2018, 21:34 PM