The Euro is the most stringent European economic bond. The Eurozone traps 19 different economies within a rigid regime of fixed currency exchange rates, depriving them of monetary sovereignty and the tools needed to respond to economic crises and effectively combat unemployment and poverty. We can affirm that the EU monetary union is not stable today.
We believe that there are only two options available to get out of this crisis. Either creating some stabilising mechanisms between countries with the aim of containing the macroeconomic imbalances of the single currency, for example by sharing possible risks among all the member states, or the other option is the collapse of the monetary union.
There is no prospect of prosperity and development within the Euro area without making the necessary reforms aimed to modify the institutional set-up of monetary union. These reforms have been invoked by experts and economists for a long time but have been continuously opposed by the wealthiest and most powerful states.
• We call for the creation of economic mechanisms of solidarity and compensation that can provide for net fiscal contributions from wealthy countries (which have unfairly accumulated enormous surpluses) to those countries affected by years of austerity and unemployment. Such transfers of resources should be used to finance productive investment and support policies aimed to a rise of the employment. It is indispensable to contain macroeconomic imbalances within the Eurozone, to reduce the divergence between countries and to ease the asymmetric impact of the single currency on the weaker economies.
• We call for the setting in place of the necessary tools that will facilitate the risk-sharing between the member states. These tools can take the form of a true public debt sharing, or in giving the ability to the ECB to buy government bonds directly from individual countries in difficulty to avoid the unsustainability of public debts or excessive financing costs, or the creation of a guarantee single European bank deposit scheme, or a common unemployment insurance.
• We are strongly opposing the financial mechanisms based on the blackmail and bullying of the strongest countries towards the weakest countries. These financials aid that should support those countries crushed by the unsustainability of the euro are becoming instead rigid and unbearable macroeconomic conditionalities based on conflicts of interest with the private capital.