Europe’s austerity budget for 2014-2020 and its rejection by the European Parliament. A short comment over an anti-Keynesian budget

Paolo Pini

No 2013142, Working Papers from University of Ferrara, Department of Economics

Abstract: In April this year the European Parliament in Strasbourg said "no" to the multi-annual budget which Governments of the European Union member Countries had agreed upon in February 2013. The changes may be minimal, but a strong message was sent to governments by the only institution in Europe elected by its citizens. The budget proposal for 2014-2020 (the Multi-annual Financial Framework - MFF) was rejected due to both method and content. To method, because it is a deficit budget which leaves the European Commission with little margin of flexibility for anti-recession measures. To content, because it favours redistributive policies between European countries rather than policies encouraging growth and employment throughout the European Union. It is an austerity budget which is deeply anti-Keynesian in a period of serious economic crisis analogous to the great depression of the 1930s. A policy of growth at a European level is needed in order to cope with the economic depression, yet a policy of rigour and austerity was proposed. That is why it is good that it was rejected by the European Parliament.

Keywords: European budget; economic crisis; economic policy (search for similar items in EconPapers)
JEL-codes: E6 O52 P16 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2013-05-03
New Economics Papers: this item is included in nep-eec and nep-mac
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