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The problem is that it is difficult to plan for long term infrastructural projects if you don't know what your income is going to be - however if those infrastructural projects are designed to help overcome structural imbalances, the need for them will diminish as they achieve their objectives. In practice some kind of hedging or smoothing strategy will have to be employed to reduce the uncertainty of income relative to the certainty of committed expenditure on formally approved projects/programmes.
Index of Frank's Diaries
For the EU to develop susch a policy, three heresies have to be embraced:
In which case the need to support industrial activity in a trade deficit region should decline as it achieves a trade balance and thus, rightly, the supports should decline.
But that is only one role of a traditional federal administration.
The federal European level may wish to also have a policy on health care, income equality, homelessness, transportation, armaments, pensions and so on and so forth. Such policies cannot be sustainably funded out of cross-subsidies. So if you make "[t]he EU budget should be funded [exclusively] from trade imbalances," then you are implying certain things about the scope and nature of the European federal bureaucracy.
I'll reserve judgement on whether these implications are good or bad, but they are there and should be kept in mind.
All trade imbalances within the Eurozone are a bad thing and should be discouraged by differential taxation and reduced through differentiation expenditure.
Well, technically speaking it's only trade imbalances in excess of sustainable growth in the actual ability of a country to honour hard-currency obligations that's unsustainable. The system is not so fragile that it will blow up unless you go all the way to zero.
The EU should actively promote economic equality in all regions within the Eurozone
At a countries level, at least. As noted above, while a policy like this promotes intra-country income equality, it is not by itself sufficient to achieve it (nor is it the point of the policy).
Friends come and go. Enemies accumulate.
However if you concede the principle that all EU regions should harmonise/converge to some form of equality, that brings all sorts of other policy and service areas into play.
We are so far off even trying to achieve equality at any level, I would settle for an EU Finance Ministry funded by a tax on trade imbalances and promoting greater economic equality at a macro level as a first step.
A Common EU public health service? Yes, we can dream.
Index of Frank's Diaries
by Oui - Jul 18 25 comments
by Frank Schnittger - Jul 16 5 comments
by ATinNM - Jul 13 25 comments
by IdiotSavant - Jul 15 5 comments
by IdiotSavant - Jul 14 1 comment
by Oui - Jul 12 24 comments
by IdiotSavant - Jul 9 27 comments
by Frank Schnittger - Jul 7 40 comments
by Oui - Jul 24
by Oui - Jul 201 comment
by Oui - Jul 1825 comments
by Oui - Jul 184 comments
by Frank Schnittger - Jul 165 comments
by ATinNM - Jul 158 comments
by IdiotSavant - Jul 155 comments
by IdiotSavant - Jul 141 comment
by ATinNM - Jul 1325 comments
by Oui - Jul 1315 comments
by Oui - Jul 1224 comments
by Oui - Jul 11
by Oui - Jul 103 comments
by IdiotSavant - Jul 927 comments
by gmoke - Jul 9
by Oui - Jul 81 comment
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by Frank Schnittger - Jul 740 comments
by Oui - Jul 234 comments
by Oui - Jun 309 comments