Europe Can Spend Its Way to Growth
A financial transaction tax and a more efficient fight against tax evasion could channel additional funds into national treasuries.
By HANNES SWOBODA
... Alternatives should be developed without giving up the goal of balanced budgets. The fact that the current recession was preceded by a decrease of public investment in measures and policies that produce growth and employment clearly indicates that these must be the starting point of an alternative strategy. In the evaluation of national budgets, investment in growth and employment should be given priority. Expenditures for these purposes should not be integrated in calculations of structural deficits and hence be punished because investment in growth generates income and taxes and therefore revenues for the state...
Mr. Swoboda, a member of the European Parliament from Austria, is president of the Progressive Alliance of Socialists and Democrats in the European Parliament.