Skip to main content

FULL-FLEDGED FISCAL POLICY COORDINATION IN THE EURO AREA 2014


FULL-FLEDGED FISCAL POLICY COORDINATION IN THE EURO AREA 

To,

The Right Honourable Prime Minister,      

Mr. Prime Minister, we are facing wide differences in fiscal parameters across Member States. The fiscal policy coordination aims to achieve fiscal consolidation across Member States. It needs to be country-specific level because Member States differ in terms of private debt and the target of public indebtedness. The lack of fiscal policy coordination underlying weaknesses in economic policy coordination across Member States and there are clear differences in fiscal behaviour and competitiveness across Member States as all brings to clear-cut divide between debtor and creditor counties in the euro area. Fiscal policy coordination will act for preventing the accumulation of imbalances across Member States and is positively raise tax revenue domestically. Fiscal multipliers are not constant across Member States. For instance, larger countries like Germany and France have always an advantage because of larger multipliers but small countries always have disadvantages because of smaller multipliers, loss of competitiveness in the foreign trade and an inability to control public expenditures and revenues. Larger countries may manage well without coordination but smaller countries may not manage well without coordination. Fiscal policy coordination turns out that small countries benefit more from larger countries fiscal policy coordination, gain of competitiveness in the foreign trade and ability to control public expenditures and revenues. Indeed, fiscal contraction does reduce output substantially. Fiscal coordination produces as large increase in output. Thus, we need coordinated action for increasing output so that we can improve labour and product markets and reduce fiscal deficits must be done by each Member States in the EU except Germany. I can say with confidence that small countries are not able to maximise output with uncoordinated fiscal policy actions. This is why I see banking union, fiscal union, economic union and political union as a necessary condition for putting european Member States on a firm footing to put a final end to the euro crisis and for building a more resilient and sustainable economic and monetary union in Europe. Coordinating national policies is not enough to bring eventual economic recovery. If political union in Europe goes significantly beyond the current state of affairs, then only the banking union, fiscal union and economic union will work. So we need a far-reaching degree of political union, otherwise banking union, fiscal union and economic union will be undone. Banking union, fiscal union and economic union was held to imply the need for a political union. If I am not mistaken, Winston Churchill was the first politician to call for the idea of United States of Europe when he delivered a famous speech at the University of Zurich in 1946. In fact, German Chancellor Angela Merkel expressed her support for eventual political union. Political union greatly augmented everything including taxing, spending and borrowing capacity at the EU level. Thus, political union will shift EU Member States to supranational institutions, overcome an existential crisis and to prevent a new crisis to occur again. What we really need is we would become one country that is “United Europe” that would become more united, powerful and all Member State has to stand only for the success.     
    
Mr. Prime Minister, obviously, if we want to overcome an existential crisis, prevent a new crisis occur again, building a more resilient and sustainable economic and monetary union, gain of competitiveness in the foreign trade and ability to control public expenditures and revenues political coperation is essential. I most humbly prayed you as a rersponsible leader, there is much to be gained by your political cooperation.

Mr. Prime Minister, please accept your excellency, the assurances of European Parliament, European Council and European Commission highest consideration of your political cooperation.     
                                                                         ATHINARAYANAN SANJEEVRAJA
                                                                                                                       
Copy to

The Federal Chancellor of Austria Mr. Werner Faymann

Belgium Prime Minister Mr. Elio Di Rupo

The President of the Cyprus Republic Mr.  Nicos Anastasiades

The Prime Minister of the Republic of Estonia Mr. Taavi Roivas

The Prime Minister of the Republic of Finland Mr. Jyrki Katainen

The President of the French Republic Mr. Francois Hollande 

The Chancellor of Germany Angela Merkel

The Prime Minister of Greece Mr. Antonis Samaras 

The Prime Minister of Ireland Mr. Enda Kenny 

Italy’s Prime Minister Mr. Matteo Renzi 

The Prime Minister of the Republic of Latvia Ms. Laimdota Straujuma

The Prime Minister of the Luxembourg Mr. Xavier Bettel 

The Prime Minister of Malta Mr. Joseph Muscat 

The Prime Minister of Netherland Mr. Mark Rutte 

The Prime Minister of the Portuguese Republic Mr. Pedro Passos Coelho 

The Prime Minister of Slovakia Mr. Robert Fico 

The Prime Minister of Slovenia Ms. Alenka Bratusek 

The Prime Minister of Spain Mr. Mariano Rajoy






Comments

Popular posts from this blog

THANK YOU NOTE TO FORMER CHIEF JUSTICE OF INDIA DR A S ANAND

To: The Hon’ble   Dr. Justice A.S. Anand, Former Chief Justice of   India & Empowered Committee Chairman From: Athinarayanan Sanjeevraja Date: Wednesday, July 25, 2012 RE: Thank you and the members of Empowered Committee and the five judge constitution Bench of Supreme Court Judges.   My lord, please accept my heartfelt thank you and the members of Empowered Committee and the five judge constitution bench of Supreme Court Judges on behalf of myself and all of the people in Tamilnadu for saving lakhs of farmers in the southern districts of Tamilnadu and the fine report you made. I wish you continued success in what you are doing my lord. The completion of the remaining judgement on Mullaperiyar will require Dharma. Every judgement should apply Dharma. Dharma should not be destroyed in any of our judgement. My lord, As you knew that “ according to lease agreement indenture granted full right, power and liberty to the Tamilnadu to construct make...

ISRAEL-IRAN-SYRIA CONFLICTS

To: The Right Honourable Israel Prime Minister Mr. Benjamin Netanyahu, From: Athinarayanan Sanjeevraja Date: May 09, 2018 RE: Israel – Iran – Syria Conflicts Suggestion The Honourable Prime Minister Mr. Benjamin Netanyahu, I am writing this letter to you on Israel air strike in Syria yesterday. You are trying to do everything possible to stop Iranian bases in Syria. Do you believe that Iran is building permanent bases inside Syria or close to Israel? How much land has Iran captured or taken from Syria? My answer is none. But you are openly threatened Iran.   Let me put it very clearly to you, there are no winners with war but losers are there. I agreed that you have strongest military force on earth. You could easily arrange a favourable peace treaty with Syria and Iran but you don’t want to negotiate with the Syria and Iran. Israel could not exist as a permanent aggressor without US. It is my humble request you to negotiate peace treaty with Syria and Ir...

Nagorno-Karabakh conflict

To put things into perspective, Nagorno-Karabakh is not an independent entity but an occupied territory of the Azerbaijan Republic and is recognised by the international community and the UN. The fact that the Armenian Prime Minister's son is doing his military service in the Armenian army located in Azerbaijan's Nagorno-Karabakh and started an undeclared war against Azerbaijan, occupied Nagorno-Karabakh and 7 adjacent regions of Azerbaijan, and massacred and forcefully deported Azerbaijani aborigines was the main reason for the lack of peace in the region. The laws of armed conflict failed to protect the Nagorno-Karabakh civilian population, individual civilians, and civilian property. The laws of armed conflict failed to discriminate between those taking parts in the fighting in Nagorno-Karabakh. The laws of armed conflict failed to protect the environment as war causes severe or long term damage to the environment. The fact here is that there is a number of international doc...