Ending the crisis and building new sustainable and shared prosperity. Our call for an ambitious European investment strategy

Seven years into the economic crisis, Europe is at risk of sliding back into recession and, beyond, to enter a prolonged period of low growth, low inflation, and persistent unemployment, if not secular stagnation.

Inequality among social groups and the gap between member states are both on the rise. Twenty-five million people, including five million young people, cannot find a job. Poverty and social exclusion have exploded as too many women and young people, in particular, are unemployed or in precarious jobs, thereby further increasing labour market discrimination. One hundred and twenty-four million people in Europe are exposed to poverty, including rising in-
work poverty, and child poverty is at shameful levels -in some countries every third child lives below the poverty line.

Certain member states have been particularly affected by the crisis, and have had to undergo severe economic and social adjustments forced upon them by the troikas, which has contributed to increasing divides within the EU and the Eurozone.

At the same time, Europe has failed to find an adequate response to the immense climate and energy challenges we are facing, and too little progress is being made towards the wider sustainability of our production and consumption patterns.

Many firms, especially smaller and medium-sized ones, are losing ground, failing to invest in productive capacity ad higher productivity. Europe’s industrial base is shrinking. Its knowledge-based and technological strengths are endangered, and no real steps have been taken towards a well-functioning digital economy.

The ambitious long term development objectives in the Europe 2020 strategy and in the 2030 Climate and Energy Package -inclusive growth, transition towards a sustainable and energy-efficient economy -are close to becoming unattainable, and mid-term goals will not be met.

Europe has failed to resolve the crisis not because of external factors, but because of misguided economic policies and persistent imbalances. Too much focus has been put on austerity, and too little on reviving sustainable growth. Both private and public investment -now close to 20% below their pre-crisis level -have suffered, reaching levels too low to sustain a recovery and too weak to underpin tomorrow’s prosperity. This needs to stop. There is no time to waste and no room for new mistakes.

Ending the crisis and building new sustainable and shared prosperity. Our call for an ambitious European investment strategy

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Ending the crisis and building new sustainable and shared prosperity. Our call for an ambitious European investment strategy
26/11/2014