Skip to main content

EU MEMBER STATES FISCAL CONSOLIDATION 2013

To: The Right Honourable The European Parliament President Mr. Martin Schulz

From: Athinarayanan Sanjeevraja

Date: June 19, 2013

RE: Eurozone Member States Government Wage Bill

Suggestion: Adopting country specific context of expenditure consolidation and tax expenditure to eurozone fiscal consolidation.

Good Morning Mr. President. Let me start by paying my respects to you and through you to. Mr. President. I am writing to the European Parliament since 2009.  My recommendation to the European Parliament that we need to adopt to the country specific context of expenditure consolidation and tax expenditure to overcome the current challenges because options for expenditure consolidation and tax expenditure differ by country. Fiscal rules are less common in most of the member states. Some member states need to reduce deficits rapidly other have more room for manoeuvre. In addition, analogous fiscal rule do not support major crisis or recession in government finances but country specific institutional features will play a determinant role to fiscal consolidation in the short run. When all EU Member States comes under EU rules of 3 percent budget deficit limit and 60 percent debt to GDP limit we will impose analogous fiscal rule for all EU Member States. I recommended this policy my last year working paper but we didn’t implement this policy. European Parliament said that we need analogous fiscal rule for all member states. Indeed, analogous fiscal rule is vital for member states but not now. I still believe that analogous fiscal rule would not help European economies to overcome the current challenges in the short run because member states have different public expenditures and tax expenditures. But we can implement analogous pension reform for all EU member states to fiscal consolidation.

Mr. President, please accept, your Excellency, the assurances to reduce deficit and public debt of EU member States by adopting country specific context of expenditure consolidation and tax expenditures. This would turn out to be Europe’s biggest step forward to ensure fiscal consolidation and bring public finances back to sustainable path in the short run. 

Sincere Regards,
Athinarayanan Sanjeevraja.   
Athinarayanan Advisory Authority
Athinarayanan Twitter   


Comments

Post a Comment

Popular posts from this blog

INDIA'S FARM BILL 2020

To:     The Right Hon. Indian Prime Minister Mr. Narendra Modi   From: Athinarayanan Sanjeevraja Date: February 15, 2021 RE:     India’s Farm Bills 2020 Suggestion: Hon. Prime Minister, let me start paying my respects to you and through you to. India’s farm reforms have been advocated for many decades by the Indian farm economists. In fact, I’m strongly in the favour of the farm reforms when I was in Indian financial market 2007. The farm laws are very good in intent and end ecologically unsound practices. Farm law needs to be welcomed as farm laws are free market laws which allow private players to directly purchase agriculture products from farmers. In other words, farm law eliminates middlemen and gives the right to farmers to sell their agriculture products to whoever they want and they could decide the price but your government proposal on farm laws which fear that it refrain small farmers have freedom to negotiate to...
Post a Comment
Read more

SUGGESTION TO THE PRIME MINISTER OF JAPAN YOSHIHIKO NODA

SUGGESTION TO THE PRIME MINISTER OF JAPAN YOSHIHIKO NODA To: The Right Honorable Japanese Prime Minister Yoshihiko Noda From: Athinarayanan Sanjeevraja Date: 30.09.2011 RE: Japan Energy Policy Suggestion: Changing Industrial Policy Good Morning Prime Minister. BBC World broadcasted your speech regarding alternate energy sources. I agree with your approach to reduce nuclear power in the medium term because having the nuclear reactors in an earthquake prone zone is not safe for the environment or the communities that live near them. Japan is struck in a difficult situation concerning energy. If you want to eventually move away from the nuclear energy, you’ll have to invest more alternative energy sources. If you can’t invest, then it may have to say with a nuclear power for a while. You need make the right decision because source of energy is dwindling. You have one more option which is Japanese people depend on nuclear power with only 1% but 9% including hydroe...
Post a Comment
Read more

SUGGESTION TO THE BANK OF ENGLAND GOVERNOR SIR MERVYN KING

SUGGESTION TO THE BANK OF ENGLAND GOVERNOR SIR MERVYN KING To:               The Right Honorable Bank of England Governor Sir Mervyn King   From:           Athinarayanan Sanjeevraja Date:            October 17, 2011 RE:               QE Suggestion:    Identify and correct the fundamental factors that are behind low economic growth.  Good Morning Sir. The Bank of England has decided to undertake more QE. I agreed that during the financial crisis of 2007-2008 monetary policy was effective in re-establishing liquidity in the main developed economies especially US, UK and Europe. But current economic conditions in developed economies reveal problems whose solutions are far beyond the scope of monetary an...
Post a Comment
Read more