The energy saving co-operative Green Deal+ Briefing 20 November 2012.
Saving the Euro needs a Green New Deal
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Transcript of Saving the Euro needs a Green New Deal
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Saving the Euro needs a Green New Deal
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
net imports on a quarterly basis in m. tons
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net oil imports on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports (-) / net exports (+) on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Recently, Greece has shown net oil exports because of demand depression, running on reserves and non-payment of bills. Therefore, recent data has little value.
current account and net imports (-) / net exports (+) on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Oil price increase key to understand current account deficits in the Eurozone
Spain Italy Portugal France
current account deficit of 4th
quarter 2011 in bn. € 7.47 6.27 1.81 10.69
increase in resource import
costs between 1st quarter
2009 and 4th quarter 2011 in
bn. €
2.34 5.29 0.35 7.77
share of this increase in
current account deficit of 4th
quarter 2011
31 % 84 % 19 % 73 %
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Germany: current account surplus and resource import costs reach all-high level
No evidence for a sustainable development of the German economy and foreign trade: huge current account surplus despite of increased costs for energy and raw material imports
1st quarter
2009
4th quarter
2011Change
Current account
surplus 25 bn. € 48 bn. € + 92 %
Resource
import costs 19 bn. € 30 bn. € + 58 %
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
expenses for net imports (-) / revenues of net exports (+) in Euros per capita
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports (-) / net exports (+) on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports (-) / net exports (+) on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
current account and net imports (-) / net exports (+) on a quarterly basis in bn. Euros
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Keeping the Euro: Economic and fiscal union
• tough rules for a renewed stability and growth pact – decided but needs social rebalancing and investment
• supporting rebalancing public budgets on the income side: financial transaction tax, European tax cooperation, taxing environmental bads, high income & wealth
• making debt affordable: redemption funds, Eurobonds
• regulating the banking system: bringing private liability back, European supervision
• reducing current account imbalances: lowering cost level in deficit countries, increasing demand in surplus countries
• a European Green investment programme through stronger environmental regulation, EU project bonds, strengthening of the European Investment Bank
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Investment into the Green New Deal
• Europe’s economies are vulnerable because of import dependency on foreign oil, gas and resources
• EU should take bold options to invest in renewables, energy efficiency and sustainable infrastructure
• investment programmes mainly in Southern Europe are also needed to limit negative effects of austerity and to reduce macroeconomic imbalances
• eew lending programmes of the European Investment Bank, structural funds (without national co-financing) and EU project bonds are in the making
• But these funds must contribute to a Green New Deal and may not fund old-style infrastructure such as roads, airports, concrete-based tourism…
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Gross investment in percentage of GDP
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Core projectsof the German Green New Deal
Ecological transformation
•green energy
•electric mobility, green car
•energy and resource efficient tool machinery
• industrial circular flow economy
•green construction
•green chemistry
•organic agriculture
•regional economic circles
Social rebalancing
•More spending in education & health
•Minimum wages
•social and solidarity economy
Saving the Euro needs a Green New DealSven Giegold, MdEP
www.gruene.dewww.sven-giegold.de
Financing
• green cuts of wasteful and harmful spending
• reducing environmentally harmful subsidises: 40 Mrd. €/a
• self-refinancing effects: avoiding import spendings & social costs
• taxing capital income
• financial transaction tax
• closing tax havens & ending tax competition
• green taxes on pollution & resources