Open letter to EU leaders

Dear EU leaders

The soaring cost of food and energy is plunging families across Europe into a cost-of-living crisis triggered by Covid-19-induced supply chain disruptions and worsened by the Russian invasion of Ukraine. The European Commission has proposed solutions, such as caps on profits from energy production. These short-term solutions are needed but must be complemented with a longer-term approach.

As civil society organisations, think tanks and trade unions, supported by academics from across the European Union, we believe this approach must address the underlying structural problems of our economic system. The economy is not delivering for most people in Europe, for younger generations and for our planet. Long-term solutions include rapid progress on the EU tax agenda, including a genuine reform of environmental taxes, as well as a deep reform of the EU’s fiscal framework – to support redistributive policies and a just green transition.

To ensure equity and justice, the wealthiest should carry the heaviest burden. We are urging you to tax polluting activities. The tax system must be strengthened, with socially balanced and progressive taxes. The richest should contribute the most and an ambitious and strict minimum corporate tax rate should be established across the EU to ensure the economy works for all. Without an ambitious progressive and gender-just taxation agenda, inequalities will continue to deepen, and the economy will continue to disproportionately benefit the wealthiest.

The Stability and Growth Pact – the rules that regulate national budgets – must be amended through a democratic and open process. Reform of such importance must not happen behind closed doors and instead should follow a democratic and transparent process that includes a formal role for the European Parliament (ordinary legislative procedure).

With the European Commission soon to launch its proposals to reform the EU’s economic governance, especially regarding fiscal rules, there is a unique opportunity to start a fresh chapter in European economic policy-making. This new chapter must ensure the EU’s fiscal rules are consistent with agreed EU macro-economic, social, and environmental goals, and establish a new approach to member state fiscal policies. Therefore, we are calling upon you to ensure the following principles are at the core of the reform:

• Build a future-proof economy with jobs for all – Allow fiscal flexibility to target a fully employed economy with decent and well-paid clean jobs available to all.
• Fill the green funding gap and make Europe energy independent from fossil fuels – Targeted and scaled-up green public investment is needed to remain below the 1.5 Celsius goal of the Paris Climate Agreement. A reformed fiscal framework should ensure the alignment of Member States’ public spending with the Paris Climate Agreement, as well as other environmental objectives including reducing resource use and zero pollution.
• Reinvest in public services and social protection – Social expenditure must guarantee universal access to quality basic public services, as well as a social safety net, so no one falls through the cracks and the care economy is central.
• Target human, economic and environmental well-being – Make durable well-being the primary objective of EU economic policy by establishing adequate indicators within the EU’s fiscal policy framework and making sure the rules do not translate again into austerity. Economic growth as a primary objective does not work and governments should rather aim to achieve improved human, economic and environmental outcomes.

Given environmental breakdown is a prolonged and structural crisis, rather than a temporary one, preemptive spending and investment today is a must. It will also mean guaranteeing a good quality of life for all, better public services, and a more sustainable ecosystem for future generations.

The new European economic governance framework and ambitious common taxation rules need to be fit for the decades to come. If designed in the right way, they could reduce social inequalities, reinvigorate trust in the EU and democratic institutions, and help build bridges between the people of Europe.

With this review, we have an opportunity to design a fairer system built around a future-proof economy with jobs for all, solidarity and sustainability. we urge you to seize that opportunity without further delays.

Yours sincerely, 180 signatories: trade unions, civil society organisations, think tanks and academics

Trade Unions

1. Arbeiterkammer, Austria
2. Confederation of Christian Trade Unions (ACV-CSC), Belgium
3. European Trade Union Confederation, European organisation
4. European Trade Union Federation representing retired, pensioners and elderly people (Ferpa), European organisation
5. Finnish Confederation of Professionals (STTK), Finland
6. General Union of Workers (UGT), Spain
7. IndustriAll Europe, International organisation
8. Italian General Confederation of Labour (CGIL), Italy
9. Italian Labour Union (UIL), Italy
10. La Confédération française démocratique du travail (CFDT), France
11. The Austrian Trade Union Federation (ÖGB), Austria
12. The General Confederation of Liberal Trade Unions of Belgium (ACLVB-CGSLB), Belgium

Civil Society

1. Bond Beter Leefmillieu, Belgium
2. Bund für Umwelt und Naturschutz e.v., Germany
3. CATAPA, Belgium
4. CEEweb for Biodiversity, Hungary
5. Clean Air Action Group, Hungary
6. Climate Action Network Europe, European organisation
7. CNCD-11.11.11, Belgum
8. Czw Climaxi, Belgium
9. Degrowth Collective Toronto, Canada
10. Deutscher Naturschutzring, Germany
11. Electra Energy Cooperative, Greece
12. Eurodiaconia, European organisation
13. European Anti-Poverty Network, European organisation
14. European Environmental Bureau, European organisation
15. European Youth Forum, European organisation
16. Federation of Environmental Organisations in Cyprus (FEOC NGOs), Cyprus
17. Finance Watch, European organisation
18. FiscalFuture, Germany
19. France Nature Environment, France
20. Fridays for Future, Sweden
21. Friends of the Earth Europe, European organisation
22. Green Liberty, Latvia
23. Greenpeace, European organisation
24. Greentervention, European organisation
25. Lifelong Learning Platform, European organisation
26. Mange Ram Adhana, India
27. Mensa Civica, Spain
28. Naturefriends Greece, Greece
29. Naturfreunde Internationale, International organisation
30. Nyt Europa, Denmark
31. OBESSU – Organising Bureau of European School Student Union, Denmark
32. Oikos – Cooperação e Desenvolvimento, International organisation
33. OXYFIN, Belgium
34. Polish Zero Waste Association, Poland
35. Positive Money, United Kingdom
36. PowerSchift e.V., Germany
37. Public Association Republican Center “Gutta-Club”, Czech Republic
38. Rural Area Development Programme (RADP), Nepal
39. SDG Watch Europe, European organisation
40. Social Platform, European organisation
41. Solidar, European organisation
42. SumOfUs, International organisation
43. TDM 2000 International, Italy
44. Umanotera, Czech Republic
45. Umweltdachverband, Austria
46. Urgenda Foundation, Netherlands
47. VšĮ “Žiedinė ekonomika”, Lithuania
48. WEED – World Economy, Ecology and Development, Germany
49. Womens Empowerment Against Poverty of Nepal (WEAPoN), Nepal
50. WWF Latvia, Latvia
51. Young European Federalists (JEF Europe), European organisation
52. Youth Express Network, France
53. ZERO – Association for Sustainability of the Earth System, Portugal

Think Tanks

1. Association for Promotion Sustainable Development, India
2. Eco-union, Spain
3. European Economists for an Alternative Economic Policy in Europe, European organisation
4. Feasta, Ireland
5. Foundation for European Progressive Studies (FEPS), European organisation
6. Modern Money Network, United States
7. Nevin Economic Research Institute, Ireland
8. New Economics Foundation, United Kingdom
9. Nicos Poulantzas Institute, International organisation
10. Our New Economy, International organisation
11. Policy Research in Macroeconomics (PIME), United Kingdom
12. Sustainable Finance Lab and Erasmus University Rotterdam, International organisation
13. Transnational Institute, Netherlands
14. Trinità dei Monti, Italy
15. Veblen Institute for Economic Reforms, France
16. Vienna Institute for International Economic Studies, Austria

Academics

1. Abderrahim Taamouti, Liverpool University, United Kingdom
2. Alessio Moneta, Scuola Superiore Sant’Anna, Italy
3. Alexander Guschanski, University of Greenwich, United Kingdom
4. Andrew Jackson, University of Surrey, United Kingdom
5. Angela Pérez , Friedrich Alexander Universität , Germany
6. Apostolos Vetsikas, University of Thessaly, Greece
7. Bastiaan van Apeldoorn, Vrije Universiteit Amsterdam, Netherlands
8. Bert de Vries, Utrecht University, Netherlands
9. Christina Teipen, HWR Berlin, Germany
10. Constantin Gurdgiev, Monfort College of Business, University of Northern Colorado, USA
11. Daniele Tori, The Open University Business School, United Kingdom
12. David Bokhorst, European University Institute, Netherlands
13. David Cayla, University of Angers, France
14. Deepa Driver, University of Reading, United Kingdom
15. Dirk Ehnts, none, Germany
16. Eladio Febrero, Universidad de Castilla-La Mancha, Spain
17. Elke Weik, University of Southern Denmark, Denmark
18. Emanuele Citera, St. Lawrence University, USA
19. Ettore Gallo, The New School for Social Research, USA/Italy
20. Felix FitzRoy, University of St. Andrews, United Kingdom
21. Gary Dymski, University of Leeds, UK
22. Giorgos Kallis, ICTA-UAB, Spain
23. Giovanni Dosi, Sant’anna School of Advanced studies, Italy
24. Gracjan Bachurewicz, Gdansk University of Technology, Poland
25. Hans Schenk, Utrecht University, Netherlands
26. Isabelle Ferreras, FNRS/UCLouvain/Royal Academy of Belgium, Belgium
27. Jan Schulz-Gebhard, Plurale Ökonomik Bamberg, Germany
28. Jason Hickel, ICTA-UAB, Spain
29. Jayati Ghosh, University of Massachusetts Amherst, United States
30. Jens van ‘t Klooster, University of Amsterdam, Netherlands
31. Jeremy Leaman, Loughborough University, Emeritus Research Fellow, United Kingdom
32. Jim Jin, University of St Andrews, United Kingdom
33. Jo Michell, University of the West of England, US
34. Johannes Schmidt, Karlsruhe University of Applied Sciences, Germany
35. Jonas Van der Slycken, Ghent University, Belgium
36. Jonathan Perraton, Sheffield University, United Kingdom
37. Jorge Uxó, Universidad Complutense de Madrid, Spain
38. Joscha Wullweber, Witten/Herdecke University, Germany
39. José Antonio Pérez Montiel, University of the Balearic Islands, Spain
40. Josh Ryan-Collins, UCL Institute for Innovation and Public Purpose, UK
41. Klaas van Egmond, Utrecht University, Netherlands
42. Ladislau Dowbor, PUC-SP, Brazil
43. Laurence Scialom, université Paris Nanterre, France
44. Lea Steininger, Vienna University of Economics and Business, Austria
45. Lisa Herzog, University of Groningen, Netherlands
46. Louison Cahen-Fourot, Roskilde University, Denmark
47. Luisa Giuriato, Sapienza University of Rome, Italy
48. Malcolm Sawyer, University of Leeds, United Kingdom
49. Marc Lavoie, University Sorbonne Paris Nord, France
50. Marco Di Pietro, Sapienza University of Rome, Italy
51. Marcus Miller, University of Warwick, UK
52. Maria del Pilar Domec Espinoza, São Paulo State University (UNESP), Brazil
53. Maria Nikolaidi, University of Greenwich, United Kingdom
54. Marie-Annick BARTHE, Université de Paris Cité, France
55. Marija Bartl, University of Amsterdam, Netherlands
56. Mark Blyth Brown, University, USA
57. Mark Sanders, Maastricht University, Netherlands
58. Martina Metzger, Professor of Monetary Economics, Berlin School of Economics and Law / Hochschule für Wirtschaft und Recht Berlin, Germany
59. Matthias Kranke, University of Kassel, Germany
60. Mattia Pettena, University of Genoa, Italy
61. Michael Edwards, University College London, UK
62. Michael Landzelius , University of Gothenburg, Sweden
63. Muhammad Ali Nasir, University of Leeds, United Kingdom
64. Neil Lancastle, De Montfort University, United Kingdom
65. Nick Fitzpatrick, NOVA Lisbon, Portugal
66. Nik de Boer, University of Amsterdam, Netherlands
67. Olga Mikheeva, University College London, United Kingdom
68. Ozlem Onaran, University of Greenwich, Institute of Political Economy, Governance, Finance and Accountability, United Kingdom
69. Pasqualina Porretta, Sapienza, Italy
70. Peter Adamovsky, University of Economics in Bratislava, Slovakia
71. Philippe De Vreyer, Paris Sciences et Lettres – Université Paris-Dauphine, France
72. Rebecca Rutt, University of Copenhagen, Denmark
73. Rens van Tilburg, Sustainable Finance Lab Utrecht University, Netherlands
74. Richard J. White, Sheffield Hallam University, United Kingdom
75. Richard Murphy, Sheffield University Management School, United Kingdom
76. Rick van der Ploeg, University of Oxford, United Kingdom
77. Robert Calvert Jump, University of Greenwich UK
78. Roberto Grandinetti, University of Padova, Italy
79. Rogier Claessen, Utrecht University, Netherlands
80. Rosa Garcia-Hernández, UAB (Universitat Autònoma de Barcelona), Barcelona
81. Rosaria Rita Canale, University of Naples “Parthenope”, Italy
82. Sergio Rossi, University of Fribourg, Switzerland
83. Simon Mohun, Queen Mary University of London, United Kingdom
84. Simon Schairer, University of Witten/Herdecke, Germany
85. Stefania Zanda, Sapienza, Italy
86. Stephanie Manea, SOAS University of London, United Kingdom
87. Stephen Keen, UCL, Netherlands
88. Steve Keen, University College London, United Kingdom
89. Sue Konzelmann, Birkbeck, University of London, United Kingdom
90. Susan Himmelweit, Open University, United Kingdom
91. Sylvain Zeghni, Université Gustave Eiffel, France
92. Thibault Laurentjoye, Aalborg University Business School, Denmark
93. Thomas E. Lambert, University of Louisville USA
94. Thomas Lagoarde-Segot, KEDGE BS and SDSN France, France
95. Tim Jackson University of Surrey, UK
96. Ulrich Demmer, LMU Munich University, Institute of Social Anthropology, Germany
97. Vincenzo Denicolò, University of Bologna, Italy
98. Vivien A. Schmidt, Boston University and Luiss Guido Carli University, USA and Italy
99. Yannis Dafermos, SOAS University of London, United Kingdom