The European Commission is planning an overhaul of its financial programme. A Eurozone budget of 25billion Euros is being planned to finance structural reforms. In addition, a ‘stabilisation function’ will be introduced to its financial package to be administered by a planned European Monetary Fund (EMF).
After coming under sustained criticism in recent years over its imposition of harsh austerity measures on countries like Greece after the 2008 financial crash, the Commission is hoping that the Eurozone budget and other measures like the proposed ‘stabilisation function’ and a European Monetary Fund will shore the union up to withstand any further shocks.
The ‘stabilisation function’ will act as a protector of investment spending by accessing the EU budget and the EMF to divert grants and loans to countries in need. The EMF will replace the European Stability Mechanism.
But there are significant tensions in the planning and implementation of the new budget. Many member states have not reached consensus on the direction of deeper integration within the Eurozone — and the appropriate distribution of funding across the region. It also plays into the hands of Brexiters and opponents of the European Union who claim that closer integration diminishes the sovereignty of national member states.
According to the Commission, these financial proposals will provide critical mass and avoid the financial burden falling on a few member states only. The structural reform is meant to focus on preparing European workers and welfare systems to cope with the growing digital revolution that requires new skills and changes the traditional ways of working.
At DiEM25, we have been fighting against the Eurozone’s inhumane and unproductive austerity policies. The new Eurozone budget presents a challenge as well as an opportunity — we must seize the reigns of Europe to make sure that no Eurozone nation is left behind in this new financial programme. Join us.
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