International competitiveness and unemployment in Europe: Towards the reform of basic income?

Compétitivité internationale et chômage en Europe: vers la réforme de l'allocation universelle?

Claude Gamel

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Abstract: European Union is facing a double challenge, namely loss of international competitiveness against Newly Industrialised Countries and internal context of latent social crisis, as a result of high rates of unemployment. In most cases, the recommended measures – "economic upturn to be expected", "demand to be stimulated" or "work to be shared" – are not up to the problem to be solved; consequently, it is no longer possible to avoid the complete revision of the Welfare State. On one hand, social insurance contribution, which are job-killing taxes, ought to be suppressed and replaced by a levy on consumption (social VAT), which would stimulate job creation and price competitiveness of EU products; on the other hand, the merger of all benefits into in one "basic income" would reduce the demand for classic jobs. The consequence would be to make more attractive not only "local jobs" and other "odd jobs", which provide supplement earnings, but also volunteer activity, as an alternative to paid work. If freedom to work is no more secured, freedom not to work ought to be recognized, as far as possible.

Keywords: competitiveness; underemployment; labour; welfare state; basic income; compétitivité; chômage; travail; protection sociale; allocation universelle (search for similar items in EconPapers)
Date: 1995
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Published in Économie en liberté. Hommages au Doyen Claude Zarka, 1995, pp.43-56

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