Welfare, Wealth and Work for Europe: From individual policy lines towards a strategic European Approach

Wien (OTS) - One of the focus points of this year's European Forum
Alpbach is the relevance of economic growth. Taking up this
discussion, a press conference with the title "Restarting growth in
Europe urgently required - But differently this time" takes place in
the Pressezentrum of Alpbach the 3rd of September 2015, at 10:30 a.m.
At this press conference the first tentative conclusions of the
"Welfare, Wealth and Work for Europe" project - funded within in the
7th EU Framework Programme to investigate options for and feasibility
of a new socially balanced and ecologically sustainable growth path
for Europe - are communicated by Karl Aiginger (project coordinator,
WIFO) together with Mathilde Mesnard (OECD) and Gunilla Almgren
(UEAPME). The press conference is moderated and summarised by Franz
Fischler, who has been actively involved in the project from the
beginning as member of the WWWforEurope Policy Board. This project
suggests new innovative game-changing measures for economic policy
with the intention to restructure the future of the European economy.

Background of the project

After an extremely successful process of unification, culminating
in a joint currency for 330 million people, Europe needs a new
strategy which pro-actively pursues an ambitious "high road to
competitiveness". The long-lasting financial crisis, problems in
neighbouring countries and the handling of the Greek crisis have
exacerbated the need for a consistent, longer-term strategy.

The four-year research program WWWforEurope presents research
results on strategy and governance, specifically focusing on the
goals of economic dynamics, social inclusion and ecological
excellence. It uses a network of 33 European research groups, as well
as high ranking policy and scientific boards, to produce evidence and
discuss options. It offers the results to the scientific community,
international organisations (OECD, European Commission),
European-based and national policy makers and stakeholders
representing social partners and civil society.

A vision for Europe 2050

As a tentative vision for Europe in the globalised world of 2050
WWWforEurope proposes:

By 2050 Europe will have become a role model for a dynamic, open
and pluralistic economic area characterised by limited income
differences, absolute decline of emissions and resource use and
positive spillovers to neighbours and the world at large.

Dynamics include that a broad set of economic and social values
will have been reached for more and more people and that economic
choices are widening. People are learning (including changes in
preferences, behaviour and institutions) how to reach welfare goals
and life satisfaction individually as well as within society. The
limits of the planet are respected; absolute emissions are
significantly reduced to a greater extent than needed from an
individual European perspective, so as to allow developing countries
to have more scope for economic development and poverty prevention.
Unemployment is low; income spreads are limited to democratically
determined levels.

Average incomes are growing slowly, but more quickly in countries
and regions with lower per capita income and for individuals with
lower incomes. Working time is reduced, mainly on an individual
basis, so that personal choices can be pursued, but with a general
downward trend. More money and time is spent on education, societal
goals and leisure or cultural activities.

Summarising the strategy lines delivers the following central
focal points of the project:

- Stronger dynamics based on innovation and skills, measured by
Beyond GDP goals

- Less income disparity, higher employment

- Europe as a world leader in environmental technology and
renewables

- Stable financial sector (smartly regulated, plus financial
transaction tax); reduced taxes on labour, higher environmental and
property taxes

- Open region and societies, taking advantage of
globalisation/heterogeneity, cooperation with neighbours

Only "high-road competitiveness" works for Europe

WWWforEurope promotes a high-road strategy for Europe and
investment in change, where the ultimate aim of 21st century Europe
has to be to move to Beyond GDP goals as a broader measure of
performance. Economic policies should be about developing
capabilities instead of being preoccupied with costs. From this
perspective, ecological and social goals become at least as important
as cost competitiveness and labour productivity. This concept
permeates WWWforEurope research work.

Five "capabilities" have been identified as strategically
important drivers of success: education, innovation, institutions, an
activating social policy and ecological ambition. Because outcome
competitiveness (the "performance" of an economy) is measured not by
the export surplus but by the attainment of a set of economic, social
and ecological goals, the intrinsic content of the term
"competitiveness" is radically changed from price (or cost)
competitiveness to the "ability of a region to provide Beyond GDP
goals". This redefinition provides a game changer from an inadequate
- backward-looking strategy to a forward-looking one.

Europe needs a two-stage strategy

A two-stage strategy is needed for Europe. In the long run,
economic growth will be lower and performance can and should be
measured by a broader set of goals requiring less growth. Europe can
and should try to lead in this transition to new societal and
ecological goals and can make social and ecological innovation its
competitive advantage. In the short and medium run (first stage),
Europe needs more dynamics, proactive cooperation with neighbours and
higher dynamics (including growth) with respect to lowering
unemployment, correcting financial balances, reducing debt and coping
with immigration. However, it is all-important that policy in this
first phase does not pursue policy as usual, but invests in long run
change. WWWforEurope therefore calls the first stage "consolidation
and reprogramming". The success of the second stage - called
"socio-ecological transition" - depends on the firm determination of
European policy that this process starts now. The decoupling of
emissions from economic dynamics as well as the decoupling of work
from growth require immediate fundamental changes in institutions and
infrastructure, in order to yield success in 2050.

Although the aim of WWWforEurope's work is to provide a menu of
analyses and policy recommendations from which policy makers should
choose, the overriding, all-encompassing message is clear: it is an
ambitious strategy to promote a socio-ecological transition towards a
less growth-centred and more welfare oriented model. It is not
without trade-offs and not easy, but it is also both necessary and
feasible.

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT | WFO

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