4. THE MODEST PROPOSAL – Four crises, four policies

The Modest Proposal introduces no new EU institutions and violates no existing treaty. Instead, we propose that existing institutions be used in ways that remain within the letter of European legislation but allow for new functions and policies.

These institutions are:

· The European Central Bank – ECB

· The European Investment Bank – EIB

· The European Investment Fund – EIF

· The European Stability Mechanism – ESM

Here are the four policies that will re-deploy the above institutions in a manner that deals a decisive blow at, respectively, (1) the banking crisis, (2) the public debt crisis, (3) the under-investment and internal imbalances crisis, and (4) the social emergency crisis afflicting countries were absolute poverty is becoming a major issue:

Policy 1 – Case-by-Case Bank Programme (CCBP)

Policy 2  – Limited Debt Conversion Programme (LDCP)

Policy 3 – An Investment-led Recovery and Convergence Programme (IRCP)

Policy 4 – An Emergency Social Solidarity Programme (ESSP)

Read Section 5: Conclusion – Four realistic policies to replace five false choices

6 thoughts on “4. THE MODEST PROPOSAL – Four crises, four policies

  1. Pingback: Revisiting the Modest Proposal: Q&A with a Skeptic – Fall 2014 version (*) | naked capitalism

  2. Pingback: Yanis Varoufakis: Why Reinhart and Rogoff are Wrong About the Eurozone’s Debt Structure and the Costs of Debt Mutualisation | Jo W. Weber

  3. Pingback: I would like to hear your critique on this "Modest Proposal" to fix the Eurozone crisis « Economics Info

  4. Ever thought about translating those proposals? After all, the UK does not need saving.

    But politics in, for instance, Spain and Italy have run into a dead-end, with major parties supporting a national hara-kiri and fringe parties calling for dramatic actions.

    Even the German debate started by AFD could benefit from a reasonable plan to actually get the damn thing working, instead of dropping it altogether.

    Maybe some smallish party in the periphery could champion the proposals and push the larger parties to adopt them.

  5. Pingback: Links 7/16/13 « naked capitalism

  6. The premise of these no doubt elegantly formulated proposals is that the Euro project is worth saving, and can yield a convergent economic whole.

    The evidence to date does not support that position, and the reasons for that are far more fundamental than poor policy implementation.

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