Brussels, 13/05/2005
“Stability and reform are not enough. If we really want to relaunch the Lisbon agenda, then we also need to act on the demand side,” says ETUC General Secretary John Monks. “Europe can do this by using the strength derived from acting together.''
The ETUC wants the new BEPGs to coordinate a ‘European recovery initiative'. Within the framework of the 2006 budgets, Member States should draw up ‘national plans for recovery and innovation'. These plans should target additional investments of 1% of GDP in the Lisbon priorities and should be financed by:
· European growth bonds issued by the European Investment Bank;
· making use of the new Stability and Growth Pact;
· lifting ‘Austrian Keynesianism' to the European level (shifting between existing expenditure and tax categories in order to increase net aggregate demand).
More on the ETUC's amendments to the BEPGs: see attachment