A European Fund for Growth and Employment

Between the ongoing sovereign debt crisis and the feeble European economic recovery, many EU member states currently find themselves clamped in an increasingly tight vice. On one hand, they are forced to adopt harsh measures to avert the risk of collapse of further economic sectors; on the other, they seek to support workers who lost their jobs and, more generally, attempt to mitigate the effects on those who have been hit the hardest by the crisis. Considering these budget problems that limit the abilities of countries to launch expansionary policies, the EU should play a decisive role to help the economic recovery through a Growth Pact. Such a policy would help to reduce the increasingly unbearable social tensions in many countries and, due to positive automatic effects on tax revenues, relax the burdens of national budgets.