Eurodividend: The Idea and the Details

Abstract

The debate about a Eurodividend is now an important element of the Basic Income debate, so like the rest of that debate it needs clarity of definition, careful distinctions, and good evidence. In this chapter, a Eurodividend is defined; the difference between a Eurodividend and a Eurodividend scheme is discussed; and the different effects of different kinds of Eurodividend scheme are explored. The differences and similarities between Basic Income and Negative Income Tax are discussed, and also the differences between Basic Income and Minimum Income Guarantee, and these same differences are then applied to the Eurodividend debate. The conclusion is drawn that the Eurodividend has to be a genuine Basic Income: an unconditional and nonwithdrawable regular income for every individual legally resident in the European Union or the Eurozone. As an example of the kind of robust research that the debate now requires, microsimulation projects in the UK are described, and a recommendation is made that the same kind of research will be required if the Eurodividend is to be shown to be financially feasible.