colin hines 6A Guardian article by LWM’s co-founder and convenor of the Green New Deal Group, Colin Hines, is summarised here.

The neoliberal export-led growth model, the increasingly discredited single currency and the utterly unchallenged single market are wrecking Europe which is facing a real nightmare: a shrinking full-time job market and hence lack of demand to keep the economy soldiering on.

The EU single market countries must reject the impossible dream of export-led growth and concentrate on their domestic economies. The much lauded “single market” is 20 years old and its emphasis on the free movement of goods, money and people is rarely recognised as being at the heart of the present European crisis.

It allowed German banks to lend to Greeks to import German cars they couldn’t afford, and the national debts that resulted are being dealt with by taking money from pensioners and the less well-off.

Meanwhile, the flow of migration and the inability of countries to control their borders under the single market are increasing tensions across the continent.

It is time for the rest of us to ask the fundamental question: what will all these European countries, newly invigorated with lower social conditions and declining domestic demand, be able to export, and to whom?

An alternative?

Transform the EU into a co-operative grouping of countries that provides a secure future for its people. Cross-border issues like climate change, pollution and crime require intra-European co-operation, but the flow of goods, money and people must be slowed dramatically to enable nations to take back control of their future and protect their citizens.

It’s time for Europe to reject the single market and prioritise the domestic market, ditching austerity in favour of encouraging activity within the member states to rekindle demand, generate jobs and allow an eventual level of taxation to reduce national debt.

Europe must reject the impossible dream of export-led growth and concentrate on domestic-led growth. Face-to-face caring and infrastructural renewal will provide the backbone for a labour-intensive future for most countries. The former can be paid for by the state, particularly once domestic and international tax dodging are tackled.

With some modest state pump priming, most of the funding for infrastructure programmes, such as more housing, making every building energy tight, diverse and locally orientated transport systems etc, can be provided by pension and insurance funds and from personal savings via bonds and ISAs.

The secure returns that can be earned from such investments are just what such funding sources need. The local jobs and business opportunities provided will help to rebuild the tax base and allow, at last, for a sustainable revitalisation of Europe’s economy.


Read the whole article here.