Green Party calls for sustainable economics that puts society, democracy and jobs first.

The Green Party has dismissed current solutions to the Euro-zone crisis as short-sighted, economically unsustainable and tantamount to an attack on European democracy.

Current solutions to the sovereign debt crisis all amount to the same thing: the poorest paying the bill.

Two solutions are currently being discussed; first, a €2trillion fund to bail out indebted countries so that they can pay their debts to banks; second, a multi billion euro project to recapitalise the banks so that indebted countries can be allowed to default without bankrupting banks.

The first solution asks European tax payers to underwrite a €2trillion fund. The second asks Europeans tax payers to underwrite banks. Essentially they are the same regressive solution, which hits the poorest hardest and does nothing to resolve a systemic crisis.

The current solution does nothing to prevent future unsustainable debt and subsequent future crisis. Instead, it undermines democracy by putting the survival of banks before the interests of society.

The Green Party has come forward with an ambitious alternative to the neo-liberal, pro-corporate ideology that is governing economic policy in Paris, Berlin and the European Central Bank.

The alternative is twofold. First, banks must pay for themselves. The level of capital reserve must be raised and new ratios of fractional reserve banking need to introduced and enshrined in legislation. In this way, unsustainable sovereign debt will be paid for by the banking creditors who decided to make a profit by taking the risk; not the societies who stand to suffer.

This will mean that the financial sector will need to reduce its asset base which will hit lending to the real economy. To offset this, a massive Green Investment Bank (GIB) must be created to lend to sustainable businesses and industries, where the financial sector fails to do so.

Such a GIB could be funded by the same capital that is being discussed for the €2trillion bailout fund and the recapitalisation of European banks. In addition, the GIB could be funded by a higher banking levy and a financial transaction tax. The difference would be that tax payer’s money would not be going into the financial black hole of hedge fund balance sheets. Instead, the money will be used to create real – tax payer owned – assets, in affordable homes, renewable energy and sustainable industry.

The Green Party calls on European governments to dismiss the needs of private financial institutions, provide millions of jobs and give tax payers control over their own economy. You might call it a democratic solution to the Euro-zone crisis.

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2 responses to this post.

  1. Posted by gerry on December 13, 2011 at 10:03 pm

    Is anybody actually reading your blog? Is it actually effective?
    I am surprised to find this posting about the Euro crisis on the Swansea page. Is it different from the national party’s analysis? What does it add?

    All this “Green Party believes in this and that”, and “Green Party has a policy that is just as economically literate as THE OTHER parties” somehow does not grab me. It actually turns me right off. And there I was, wondering if the Green Party might have anything of interest to me.

    Reply

    • Perhaps a misunderstanding of the purpose of this site Gerry. If you read our ‘About’ page you will see that this is not a “blog” as such, but a site for publicising our activities and policies.

      Our stats show that quite a number of people read it and we do get regular feedback, which is dealt with offline by direct communication with people who comment.

      As for the particular post that you comment on, it is a reflection of national policy, which we feel is just as relevant to Swansea as it is to anywhere else.

      It’s pleasing that you feel that our policy is “just as economically literate as the other parties”. That perhaps shows that we have come a long way from the days when people accused us of being just about the environment with nothing to say about the “real” issues such as the economy. We, as you would expect, feel that our policy if considerably more literate than others as it is designed to protect the majority of our citizens, not just the banks.

      Keith M Ross
      Swansea Green Party

      Reply

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