European Economic Recovery Plan

This is a link the the European Economic Recovery Plan issued the the EU commission. It is interesting in that the focus is on stimulus and investment.

The first pillar is the ‘a major injection of purchasing power into the economy to stimulate demand and boost confidence’

The second pillar is based on a comprehensive programme to direct action in ‘smart’ investment.

The fundamental principle underlying the plan is ‘solidarity and social justice’.

In section 2.2 it states “only through a significant stimulus package can Europe counter the downward trend in demand, with its negative knock on effects on investment and employment. Therefore the commission proposes that member states agree a coordinated budgetary stimulus package”

Where is this coordination? Is it possible for the EU to coordinated measures when it does not have a shared collective fiscal plan? We have a shared monetary plan that is effecting some states more than others, surely this requires a coordinated fiscal response?

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