However, focussing the discussion
on growth versus austerity alone exposes the poverty of imagination by which
policy makers are approaching what is essentially a crisis of confidence in the
deregulated market system. This system promised to deliver the good life to the
citizens of Europe but after several decades of growth, there is now greater poverty and inequality between the
member states of the EU as well as within most of these countries than there was twenty years ago.
This reveals the deeper moral
dilemma posed by the market system which asks us to think of ourselves as autonomous
individuals and consumers as opposed to inter-dependent human beings with
inextricable links to the rest of creation. It also privileges the movement of
capital and financial transactions over the well-being and flourishing of
people rooted in communities which led directly to the 2008 financial crisis
and ensuing global economic recession. The sovereign debt crisis now
threatening the continued existence of the EU is simply another manifestation
of this moral crisis.
Expansionary policies to
facilitate growth will not therefore be enough to pacify the markets at this
late stage and will certainly not address the underlying moral dilemma of the
market system. This will require much more creative and innovative thinking in
the medium and longer term and southern EU countries will require strategic investment
accompanied by structural reforms to reverse current trends.
Member states of the Euro-zone will also need to decide on the moral purpose of
the market as they consider the bigger issue of fiscal and political union to give
credibility to their common currency.
However, an urgent short term solution is
needed to prevent the implosion of the EU and the proposal for a Euro-zone FTT or Robin Hood Tax as the campaign is known in the UK can provide an
intermediate moral solution – see www.robinhoodtax.org.uk . This campaign has gained wide support from supporters
across the world in the past two years including Archbishops Desmond Tutu and
Rowan Williams, Nobel Prize
winners Joseph Stiglitz and Paul Krugman, Earth Institute Director Jeffrey
Sachs and 1,000 other economists from around the world. Following the
significant progress seen under the French Presidency of the G8 and G20 last
year, Germany, France, Spain, Brazil, Argentina, South Africa, Ethiopia and the
African Union all pledged their support for a Robin Hood Tax.
In the UK, thousands
of people have been campaigning and lobbying MPs to introduce a FTT to help those
hardest hit by the financial crisis and good causes overseas. The First Ministers
of Scotland and Wales have both voiced their support for the tax, along with a
number of Westminster MPs. Thanks to huge public support, bank taxes have been
pushed onto the political agenda, and keeping the pressure up is the most
important thing we can do right now. Robin Hood Tax supporters in England,
Wales and Scotland have already been taking
action this week to show their support for this tiny tax that could make a
huge difference to people’s lives all over the world.
As an economic
storm once again threatens to engulf the world economy, all eyes will be on
world leaders to fix the system at the upcoming G8, G20 and Rio Summits; by
curbing casino capitalism, Robin Hood taxes will help do that, in addition to
raising tens of billions to help the world's poorest people.This is an idea whose time has come and that time for the Euro-zone is NOW!
