The evidence presented in this report shows that the policy of prioritising austerity is not working and an alternative is required. The approach of imposing austerity measures and structural reforms aimed at reducing government borrowing and the debt/GDP ratio within a short number of years is not working in economic terms. Simultaneously, it is putting the social cohesion of Europe and the very political legitimacy of the European Union at risk.
Fair solution to the debt-crisis must be found: the recent EU agreement to recapitalise Spanish banks without adding to sovereign debt (June 2012) recognises that making taxpayers responsible for the massive debts of their banks is unsustainable. Turning banking debt into sovereign debt must be recognised as unfair and unsustainable for all affected countries and a fairer burden-sharing approach adopted.
Despite rhetoric to the contrary there is currently a failure to integrate economic and social policies, and a lack of a longer-term commitment to an inclusive society, which in turn is necessary to building a sustainable economy. The people paying the highest price currently are those who had no part in the decisions that led to the crisis, and the countries worst affected are amongst those with the biggest gaps in their social protection systems so their welfare systems are least able to protect their vulnerable populations. This process is unfair and unjust.
The above text is an excerpt from The Impact of the European Crisis, a report prepared by the Catholic organization Caritas Europa for Social Justice Ireland (2013, p. 5, original emphasis omitted).
No comments:
Post a Comment