The divisions within Europe on a joint crisis plan now get individual countries to resort into national emergency solutions. France‘s new socialist president, François Hollande, have the courage to take the lead and the willingness to make his election promise of creating a more socially equitable debt repayment – and introduced with effect from yesterday increased fiscal taxes on, among other shares.
France’s new finance tax is with some technical differences, the European financial tax proposal by the EU Commission. For months, the debate rolled across the continent and divided European countries into two groups – with Germany and France in the vanguard and the northern skeptic countries, Britain, Sweden and Denmark, as opponents. Now, fiscal tax a reality in France and will continue to contribute by billions to pay off the French debt, which largely has been accumulated on account of the rescue packages for the financial sector.
It is responsible and fair. A national fiscal tax is only the second best solution. Of course it would be more efficient and effective to introduce a tax on money transactions at pan-European level. But no, the Nordic countries blocked. Finance Tax may be criticized from the front and rear, but it is basically positive that France shows. that there are alternatives to the bourgeois cocktail of austerity measures and tax cuts, which obviously does not work.
Unemployment continues to rise. Nobody has the magic solution to Europe’s morass or the common level in the EU or locally in the heavily indebted countries. Therefore it is healthy that countries are trying out different actions and at the same time kick boost employment and reduce debt.
Without new jobs the economy will continue to shrink, and the debt would increase relatively, completely out of control. And with no real debt servicing costs will the interest payment block for new job investments. President Hollande is trying to find a new balance – with both increased job investments and additional tax revenues from the least productive parts of the speculative economy.
But it will be a historic failure, not daring to try new solutions. It’s time to bet, if Europe’s economies should not languish in conservatism.
Culture and Development, UN