European Basic Income: Why and how to get there?
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Slides from a presentation at the European Parliament on 18 September 2018 at the Postgrowth conference. Full video speech here: https://www.youtube.com/watch?v=guv3vZam39Q
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European Basic Income: Why and how to get there?
- 1. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 European Basic Income Why and how to get there? www.basicincome-europe.org facebook.com/BasicIncomeEurope @BasicIncomeEU BasicIncomeEurope Stanislas Jourdan Head of Positive Money Europe stan.jourdan@positivemoney.eu
- 2. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe What is basic income? “A periodic income unconditionally granted to all members of a political community on an individual basis, without means test or work requirement. The basic income should be high enough to ensure a dignified existence and full participation in society.” ➔ Individual rather than household ➔ Universal: everyone should be receive it automatically ➔ Unconditional: not means tested ; no work requirement ➔ High enough to live in dignity and participate in society
- 3. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Why basic income? Among (many) other reasons: ● Social protection modernization: current welfare state models are over-complex and ineffective to combat poverty and inequality. Means-tests and activation policies are counter-productive (non-take up). ● Wealth redistribution based not only on income distribution but also common wealth (natural resources, land, big data, etc.). Basic income is a right to access common resources. ● Emancipation from exploitative labor and social conditions. Incentivization to reducing working hours and increase engagement in non-market activities.
- 4. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Why a European basic income? ● Re-legitimizing Europe: direct transfers to all europeans would anchor a sense of citizenship and build a caring Europe ● Tackling extreme poverty: virtually all national welfare states in the EU are under pressure from budget cuts and globalisation. UBI would end the “race to the bottom”. ● Macroeconomic stabilizer: UBI transfers would help reduce asymmetric shocks within the EU (and in particular in the Eurozone)
- 5. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 What would an EU-wide basic income scheme look like? The Eurodividend proposal Eurodividend ~ 200 EUR National minimum incomeTotal basic income EU Poverty line Funded at national level Funded at EU level Housing, disability etc. Wages and other incomes
- 6. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 Financing options for financing a Eurodividend should ideally comply with those four criteria: ➔ Sizeable: have large tax base across all EU member states) ➔ Sustainable: low volatility and predictable income stream ➔ Subsidiarity: there must be a strong case for shifting (or implementing) fiscal mechanism to the EU ➔ Progressivity: the financing mechanism should contribute to a better distribution and allocation of resources Financing principles
- 7. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 ➔ Consumption tax (VAT) ◆ Already the most harmonized tax at EU level ◆ Large and reliable tax base ➔ European Corporation Tax ◆ Corporations who benefit most from the EU’s single market should contribute at EU level ◆ Popular support for tackling tax avoidance ◆ Will soon become possible with CCTB ➔ Carbon tax and green fiscal instruments ➔ “Quantitative easing for People” by the European Central Bank ◆ More effective than 2.5 trillion EUR of quantitative easing for banks ◆ Not a sustainable financing option but can help the starting phase How to finance it?
- 8. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 Fiscal transfers of 200 EUR basic income across EU27 countries Source: Jean Mansuy & Stanislas Jourdan (2018)
- 9. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe 1. European Universal child benefit ◆ 100 EUR / month for all children under 18 ◆ Cost: 100 billion EUR (~1% EU GDP = current EU budget) 2. “Erasmus for all” ◆ 1000 EUR / month for 2 years ◆ All adults between 18-65 are eligible 3. EU Funding for pilots 4. “Quantitative Easing for the People” / Helicopter money More pragmatic steps
- 10. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 Redistribution effect for child benefit (Source: Jean Mansuy) Redistribution effect across the EU (Universal child benefit 100 EUR per capita - no PPP)
- 11. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe EuropeanSocialSurveyRound8 Popular support for UBI?
- 12. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 “Far from imposing top-down a mega welfare state, a firm common floor for the most redistributive dimension of social policy keeps fiscal competition and social dumping under check and thereby allows each member state to maintain and improve its own preferred version of the welfare state. As an antidote to the race to the bottom, this bottom-up conception of an active social Europe is fully compatible with subsidiarity properly understood.” The Eurodividend: A bottom-up social Europe Philippe Van Parijs, 2013
- 13. Stanislas Jourdan, European Parliament 2018 Unconditional Basic Income Europe Stanislas Jourdan, European Parliament 2018 Join the movement! www.basicincome-europe.org facebook.com/BasicIncomeEurope @BasicIncomeEU Author: Stanislas Jourdan Design: Ondřej Klouček stan.jourdan@positivemoney.eu BasicIncomeEurope