Saving the Euro needs a Green New Deal Sven Giegold, MdEP Saving the Euro needs a Green New Deal.

Saving the Euro needs a Green New DealSven Giegold, MdEP

www.gruene.dewww.sven-giegold.de

Saving the Euro needs a Green New Deal



current account and net imports on a quarterly basis in bn. Euros



net imports on a quarterly basis in m. tons



current account and net oil imports on a quarterly basis in bn. Euros



current account and net imports (-) / net exports (+) on a quarterly basis in bn. Euros



Recently, Greece has shown net oil exports because of demand depression, running on reserves and non-payment of bills. Therefore, recent data has little value.




Oil price increase key to understand current account deficits in the Eurozone

Spain Italy Portugal France

current account deficit of 4th

quarter 2011 in bn. € 7.47 6.27 1.81 10.69

increase in resource import

costs between 1st quarter

2009 and 4th quarter 2011 in

bn. €

2.34 5.29 0.35 7.77

share of this increase in

current account deficit of 4th

quarter 2011

31 % 84 % 19 % 73 %



Germany: current account surplus and resource import costs reach all-high level

No evidence for a sustainable development of the German economy and foreign trade: huge current account surplus despite of increased costs for energy and raw material imports

1st quarter

2009

4th quarter

2011Change

Current account

surplus 25 bn. € 48 bn. € + 92 %

Resource

import costs 19 bn. € 30 bn. € + 58 %



expenses for net imports (-) / revenues of net exports (+) in Euros per capita



Keeping the Euro: Economic and fiscal union

• tough rules for a renewed stability and growth pact – decided but needs social rebalancing and investment

• supporting rebalancing public budgets on the income side: financial transaction tax, European tax cooperation, taxing environmental bads, high income & wealth

• making debt affordable: redemption funds, Eurobonds

• regulating the banking system: bringing private liability back, European supervision

• reducing current account imbalances: lowering cost level in deficit countries, increasing demand in surplus countries

• a European Green investment programme through stronger environmental regulation, EU project bonds, strengthening of the European Investment Bank



Investment into the Green New Deal

• Europe’s economies are vulnerable because of import dependency on foreign oil, gas and resources

• EU should take bold options to invest in renewables, energy efficiency and sustainable infrastructure

• investment programmes mainly in Southern Europe are also needed to limit negative effects of austerity and to reduce macroeconomic imbalances

• eew lending programmes of the European Investment Bank, structural funds (without national co-financing) and EU project bonds are in the making

• But these funds must contribute to a Green New Deal and may not fund old-style infrastructure such as roads, airports, concrete-based tourism…



Gross investment in percentage of GDP



Core projectsof the German Green New Deal

Ecological transformation

•green energy

•electric mobility, green car

•energy and resource efficient tool machinery

• industrial circular flow economy

•green construction

•green chemistry

•organic agriculture

•regional economic circles

Social rebalancing

•More spending in education & health

•Minimum wages

•social and solidarity economy



Financing

• green cuts of wasteful and harmful spending

• reducing environmentally harmful subsidises: 40 Mrd. €/a

• self-refinancing effects: avoiding import spendings & social costs

• taxing capital income

• financial transaction tax

• closing tax havens & ending tax competition

• green taxes on pollution & resources

Saving the Euro needs a Green New Deal Sven Giegold, MdEP Saving the Euro needs a Green New Deal.

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