I have been trying to get on top of whether the Draghi Report on European economic competitiveness is really a game changer. Without study, it seems to be a call for more EU (as opposed to member state) debt. Can this be bad? Within the UK economy, I am of the view that within the UK, there needs to be transfer union i.e. that borrowing and wealth from London needs to be shared with other parts of the country and with the EU’s cohesion fund programme, they can ensure that the money goes where its needed.
I found this article from the FT, which is headlined, “Europe can learn fiscal lessons from the UK on how to achieve its goals”, and subtitled, “ A co-ordinated reform agenda is crucial if the EU is serious about becoming a climate leader and geopolitical player”, written by Draghi. On diigo, I highlighted the following lines,
The UK government has chosen to significantly raise public investment over the next five years and has adopted precise rules to ensure that borrowing is used only to fund this investment. … Moreover, in order to ensure the quality of spending, transactions will be validated by independent authorities.
To which I reply, “Of course Draghi would argue for independence. The near cultish following with which his recent comments have been greeted is based on the desire by politicians and…
