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Wages linked to performance lead to increased inequality

Wage inequality is on the rise, pushed by technological change, globalisation and trade, and institutional deregulation. It is a problem of fairness. But inequality itself also has negative effects on the economy as a whole. Increasingly, this inequality can be traced back to companies and pay setting. Companies increasingly differ in their productivity and revenue. […]

European fiscal rules: reform urgently needed

The EU’s fiscal rules are currently deactivated due to the Covid-19 crisis. However, returning to the pre-Corona rules would be counterproductive. The first priority of reform efforts should be to ensure that applying the rules will not deepen economic crises and hold back recovery. The second priority should be to allow for more public investment. […]

Speeding up the reform of EU fiscal rules – back to work

The work on revising the fiscal rules of the European Union had started long before Covid-19. The global pandemic had put the work on hold, for good reasons. Now that the EU debt levels have risen to new highs the past year, there is a strong need to speed up the process to ensure the […]

Changing the debt rule would miss the point

Already before the pandemic, it was clear that the economic governance framework of the European Union was unfit to drive long-term prosperity and that it was particularly ill-equipped to sustain the economy in times of recession. The point however is that moving towards a better post-pandemic economic framework is not only a matter of fixing […]

Fighting precarity: a paradigm shift from equality-in-prosperity to solidarity-in-wellbeing

We stand at a pivotal point in history – one that contains the opportunity to replace the equality-in-prosperity formula of progressive politics with a new one: solidarity-in-wellbeing. For the past 100 years, the critique of capitalism has centred on unfair distributive outcomes (economic inequality), as well as the damage that consumerism and the commitment to […]

European fiscal rules: reform urgently needed

The EU’s fiscal rules are currently deactivated due to the Covid-19 crisis. However, returning to the pre-Corona rules would be counterproductive. The first priority of reform efforts should be to ensure that applying the rules will not deepen economic crises and hold back recovery. The second priority should be to allow for more public investment. […]

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