Europe's Austerity Budget for 2014-2020. A Comment over an Anti-Keynesian Budget

Abstract

With the European Council in June 2013 a final agreement has been reached on the 2014-2020 Europeanbudget (the Multi-annual Financial Framework, MFF) and in July 2013 the European Parliamentin Strasbourg has approved a political resolution proposed by PPE, S&D, ALDE favourable to this agreement.Before, in April this year, the European Parliament said «no» to the multi-annual budget whichGovernments of the European Union member Countries had agreed upon in February 2013. The changesrealized with the final agreement are minimal, but in some aspect essential, so that a strong message wassent to governments by the only institution in Europe elected by its citizens.The budget for 2014-2020 is unsatisfactory due to both method and content. To method, because itis a deficit budget which leaves the European Commission with little margin of flexibility for anti-recessionmeasures. To content, because it favours redistributive policies between European countries ratherthan policies encouraging growth and employment throughout the European Union. It is an austeritybudget which is deeply anti-Keynesian in a period of serious economic crisis analogous to the great depressionof the 1930s. A policy of growth at a European level is needed in order to cope with the economicdepression, yet a policy of rigour and austerity was proposed.