This paper provides insight into what the European Union or Euro Area policy could look like if it were more directly inspired by Keynes’s views. It starts from the disappointing results of the EU-EA as far as employment, inequalities or environment are concerned. It also addresses the role of rules and sanctions vs discretion in the decision process, showing that budget rules have often been violated and the corresponding sanctions have never been applied. It suggests that at least 6 policy objectives - employment, price stability, economic growth, trade equilibrium, inequalities and environment - should receive equal priority. Ultimately, it advocates policies that could trigger public investments and create a real solidarity mechanism at the EA level. Drawing on Keynes’s The long run is a misleading guide for current affairs. In the long run, we are all dead, 27 years after the Maastricht Treaty, the paper claims that the long term, ... it’s now.
Bijdrage gebaseerd op presentatie voor het Belgisch Financieel Forum, Leuven, 09.10.2017.