REACT Madrid: getting Europe’s economy back on track | WPN World People News

How do we nurse Europe’s economy back to health? Should the EU keep taking the same austerity medicine or try something different? On 20 February, the EP organised a ReAct event in Madrid to discuss how to create jobs and growth in a sustainable way with academics, MEPs, bloggers and ordinary people.

Madrid ReAct event with Vicente Vallés (left) and José García Montalvo.

Spanish MEP Pablo Zalba, a member of the EPP group, made it clear that for him there were no miracle cures and that austerity and growth were two sides of the same coin: "We had no choice but to knock Europe’s public finances back into shape. But the EU central bank has to pump more cash into the economy to get credit flowing, boost growth and get people back to work." Although he understood why people were angry, Mr Zalba said a better macroeconomic situation was need to create confidence, which was a must for growth and employment.

Economics professor José García Montalvo said he expected the banking union to help recover market trust in the EU's financial system and in the long term he could see EU countries sharing their debt burden. The professor also praised the work done by the European Central Bank: "Without the measures it took, the euro would be in trouble.” He now expected the euro to stay.

Professor Reyes Calderón highlighted the key role played by small and medium-sized entreprises and outlined her four-point plan for success: education, innovation, flexibility and more Europe. She said young people needed to be able to get out and go where the job opportunities are and governments had to do more to help them move from one country to another.

Meanwhile professor Javier Díaz-Giménez said that although cuts were tough, going back to the peseta was not an option. Responding to tweets claiming the German economic model doesn’t work for Spain, the professor said there was no other way forward: “A €400 salary is better than nothing at all and also better than a €400€subsidy!”

Audience poll

An electronic poll among audience members revealed:

1. A majority were in favour of a tax on financial transactions and using the money to create jobs

2. 49% said the fight against tax evasion needed to be stepped up

3. For 62% the overriding investment priority should be education

4. 50% said red tape needed to be cut so businesses can create jobs

5. To beat the crisis, the top option was overhauling the economic model.

Source: European Parliament