The former Greek finance minister has pointed out a strategy on how Europe could prevent an economic depression and shield European citizens as a result of the coronavirus pandemic. The Democracy in Europe Movement 2025 (DiEM25) unveiled the plans, that warn if urgent action isn’t accepted the EU will fall.
Mr Varoufakis composed on Twitter: “What should Europe do? (instead of this comedy of mistakes coming from Brussels, Frankfurt & Berlin).
The economics professor, that presents DiEM25’s proposals in the video, also provides a hyperlink.
The political movement asserts the EU is presently failing in its reaction to the pandemic, and consequently the bloc risks being torn apart.
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It wrote: “The COVID-19 pandemic is the greatest test of the European project from the background of the Union — and we are failing.
“However, solidarity is missing at the present time it’s most needed.
“COVID-19 has revealed a basic truth: Europe is just as healthy as its sickest resident, only as prosperous as its most bankrupted.
“However, the EU’s leadership is paralysed by its beggar-thy-neighbour — and sicken-thy-neighbour — mentality.
“The price of this failure won’t merely be lives lost and livelihoods ruined.
“It will be the disintegration of the Union itself.”
As a result, DiEM25 offered a plan aimed at averting an economic depression protecting all residents and preventing the collapse of the Union.
Nine EU countries have so far called for Eurobonds to be introduced a bond issued by the European Central Bank (ECB) with the intent of distributing debt onto a European level.
Such a move could require closer monetary integration between member states but it has caused heated debate across the bloc, as nations are opposed to the idea.
DiEM25 proposes the ECB issued a 30-year Eurobond, which provides the bloc three years to decide how to reimburse its central bank.
The second suggestion would give a direct cash injection, as most are struggling as a result of the lockdown across Europeans nations.
DiEM25 said the entire cost to the ECB will be $750billion (£669billion) and each country could tax people in proportion of their overall income at the end of the year, recouping among the cash payments.
The final proposal by the governmental move calls for the EU to make a permanent post-pandemic European Green Recovery & Investment Program, implemented by a new European Green Recovery Agency and financed by an alliance of the ECB and the European Investment Bank.