Employment-focused recovery for Europe

An alternative to austerity

Policy Study

09/10/2014

Authors: Giovanni Cozzi (Foundation for European Progressive Studies) and Jo Michell (University of the West of England)

The Cambridge-Alphametrics Model (CAM) is used to in this study to compare and contrast two alternative scenarios for Europe. In the first we assume a continuation of current policies based on austerity measures and supply-side labour market policies. We contrast this with an ’employment-focused’ approach in which austerity policies are reversed and investment rates rise significantly in the context of expanded European budget. In order to reduce the costs of servicing high levels of sovreigh debt, we also assume that the debts of peripheral Eurozone countrieds above 60% of GDP are pooled into a European Debt Redemption Fund at a reduced rate of interest. On the basis of our projections we conclude that an emplyoment-focused recovery strategy is indeed feasible as a realistic alternative to austerity.

Find all related publications
Publications
28/02/2024

Progressive ideas to make international trade successful for all

24/01/2024

Progressive Yearbook 2024

Looking back to look ahead
22/11/2023

The macro-economic impact of the cost crisis

Lessons for Europe
18/09/2023

Making trade work for prosperity, people and planet

FEPS Primers series - Arancha González and Yanis Bourgeois
Find all related Progressive Post
Progressive Post
27/02/2024

European agriculture: it’s about farmers’ income, stupid!

08/02/2024

A just transition in crisis mode

06/02/2024

Food prices are high. Why are farmers angry?

Find all related events
Events
Upcoming
02/05/2024
Bratislava, Slovakia

Social and environmental justice in the EU

Who will pay for it?
Past
17/04/2024
Pécs, Hungary

Taxing the richest in the EU

For a Just, social and green transition in Hungary
20/03/2024
FEPS HQ (closed-door workshop)

Taxing billionaires for the EU to deliver on a wellbeing agenda

Workshop within the S&D Youth Event
Find all related news
News
18/01/2024

FEPS President at Euronews talk-show ‘Brussels, my love?’

29/11/2023

Economic Democracy

FEPS launches an initiative on Economic Democracy
09/10/2023

Tax the rich

A European Citizens' Initiative
14/09/2023

Call for tender – Researcher on inflation

This call for tender closed on 03/10/23
Find all related in the media
In the media

Ласло Андор: Европа трябва да създаде нов модел за икономически растеж

by dir.bg 14/03/2024
'Europe must create a new model for economic growth'. Interview by Laszlo Andor, FEPS Secretary General

FEPS President at Euronews talk-show ‘Brussels, my love?’

by Euronews 15/01/2024
Panellists discussed topics including EU fiscal rules reform, German farmer's protests, and the decision of Charles Michel to quit his job early to run for MEP.

“Trade doesn’t work in isolation from good domestic policies” Interview to Arancha González

by Borderlex 19/09/2023
Interview to Arancha González, former Spanish foreign minister, who released together with FEPS the new book entitled 'The Trade Handbook: Making Trade Work for Prosperity, People and Planet'

A szociális unió imperatívusza

by Új Egyenlőség 09/09/2023
'The imperative of Social Union'. Article about FEPS book 'Europe’s Social Integration: Welfare Models and Economic Transformations' by László Andor.