The EU President Jean-Claude Juncker has announced a €315 bn investment scheme in yet another attempt to try to kick-start the economy, and create 1.3 million jobs. These schemes are hopeless because they keep hunting capital and raising taxes. Without confidence in the future, people will not invest or expand their business to offset the unemployment. This is not theory that is going to work – we need practical solutions that are proven to have worked in the past. The problem is that we keep using the same theories that have just never worked.
Juncker also faces a no-confidence vote as he plays down his role in overseeing Luxembourg’s highly controversial tax system. The tax administration did not have to report to the finance minister after several big international companies paid no tax. This has been a sore spot to say the least.
There is an increasing third-party trend in politics expected by 2016 with a new crop of upcoming politicians who will have the right ideas of replacing the old with the new. There is hope we can see political change, but this will not come without economic pain.
