How to make the most of the Next Generation Eu
The post by Gianni Bessi, regional councilor of Emilia-Romagna and author in 2020 of “House of zar. Geopolitics and energy in the time of Putin, Erdogan and Trump "(goware editions)
Three women around the heart …
The three women that fate or, even better, the Zeitgeist has put at the helm of political, economic and financial Europe in this crucial phase for the future of the EU, will have to face the situation of the Covid-19 shock with a policy of monstrous investments and incentives that make it possible to build vertical progress for the EU area. And make sure that the strategic choice is above all shared (and carried out). That it is therefore a political choice and not just an economic one.
The steps to manage European incentives have already been put in black and white: in the Next Generation Italia document , regarding the macroeconomic impact of investments and incentives, we read that "in the medium term, greater investments increase the public capital shock with positive effects persistent on potential and actual GDP ". And by scrolling just a few pages, the instructions for use also arrive: “the sustainability of public investments depend substantially on the regulatory regime and its implementation. Finally, the effectiveness of public investments requires strong coordination between the various levels of government ”.
In a nutshell, it is necessary to remind politics of some economic laws, because economic transactions will continue to regulate, whether we like it or not, our lives. Faced with such a powerful EU plan, a financial policy for the recovery of the economy must know how to move: growth only in debt is not admissible without a corresponding increase in productivity and income. That is, the debt must not grow faster than income in order not to risk that the burdens further crush the possibility of spending, making us plunge back into recession. That's what happens when you just embrace the subsidy tactics.
At the same time, incomes must not grow faster than productivity, otherwise there is a risk of a decrease in competitiveness. The goal is therefore to increase productivity, to position itself as a country economy at the top end of the value chain. From this point comes the choice of which development model, if supported by industrial policies or services, as well as the need to invest in the potential wealth of every society, that is, young people: in school, university or work training then.
After all, the incentives document was entitled Next generation: if it is a plan for the next generation it must be applied consistently.
Thus ends, with a wish, the Christmas episode of our trip to Europe during the semester under the German presidency, which has already touched the main cities, from Berlin to Brussels to get to Frankfurt, Karlsruhe, Warsaw, Vienna, Moscow, Rome, Bologna , Ravenna. And places like the Bundestag, the German parliament, the Berlaymont building, seat of the European commission, Palazzo Madama in the Italian Senate, the Eurotower headquarters of the ECB, the beaches of the Baltic Sea or the banks of the River Main. A journey that in 2021 will resume with the same spirit and, if possible, with the right antibodies.
(3. end; the first part and the second part can be read here and here respectively)
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/come-applicare-al-meglio-il-next-generation-eu/ on Sun, 27 Dec 2020 06:20:33 +0000.