Over the last decade, the gap between the old and the young in Europe has been growing due to worsening social and economic conditions. The presentation lays down a set of proposal both at the EU and at the national level to reverse the trend.

1. Intergenerational
Justice
Solution Paths in Austerity Times
Panagiotis Vlachos | 26.11.2016

2. Facts
A dimension of social justice. Others include poverty prevention,
equitable education, access to labor market, social cohesion and lack of
discrimination, access to health services.
● Seven years after the global economic crisis in the vast majority of
EU states - with a few exceptions like Czech Republic, Germany,
Luxembourg, the UK, and Poland –social cohesion is in a worse state.
● ALERT: the gap between the generations has widened considerably
since the crisis began. In most countries pensions and benefits for
older people did not shrink as much as incomes for the younger
population during the crisis, if at all.
● Policy Path: abandon austerity - boost investment - inclusive growth -
social cohesion

3. Solution Paths/EU level
➔ from blanket austerity to Six Pack Austerity to ECB
expansionary policy.
➔ change of mind: stronger domestic demand based on
faster wage increases in high-surplus countries and
greater investment throughout the Union
➔ public debt consolidation, lower interest rate payments,
partial write-off
➔ more flexibility in the Stability Pact
➔ extensive and inclusive investment plan - but for all
➔ public investment plans (digital, 4th industrial revolution,
networks, transportation, environment)

4. ● Youth employment initiative, Youth guarantee and
better implementation mechanisms at the national
level to address the available skills - existing Address
Jobs mismatch (cross-border function)
● Basic universal income and minimum wage to be
combined with national social safety nets
● Reducing bureaucracy regarding the mutual
recognition of qualifications and creating easier ways to
transfer social security entitlements to another country
to...
● Increase labor mobility
● More spending on RnD from the EU budget
● Active role of the European Ombudsman
● Certain clause in the next European Constitution

5. Solution paths/national level
Institutional interventions
Critics: We should leave
it to policy makers, not to
legislators. No generation
has the right to bind the
future of the next ones
through constitutional
clauses
● constitutional clause for future generations (general
clauses that acknowledge responsibility for future
generations, environmental clauses, fiscal clauses -
golden rule, eg. Germany, Italy, Latvia, Lithuania)
● parliamentary ombudsman that oversees whether
legislation or policies favour
● special ombudsman for intergenerational
equity/intergenerational solidarity
● good governance framework, evidence-based
legislation & preliminary control of all legislation by the
Ministries, the Parliament and the Ombudsman
● voting rights - lower age limit (e.g. Greece)
● participation quota in public office and party ballots

6. b. Policy interventions
- Investment in high-quality early-childhood
education to ensure equal opportunities
- provision of daycare and preschool facilities as
well as generous parental-leave schemes
(Sweden)
- separation of spouses’ income and individual
taxation
- sustainability of pension systems - incentives
to stay longer in working life in order to alleviate
the burden from the younger ones (Finland and
Denmark, 3-pilllar system)
- increase/boost investment in RnD (Finland,
Sweden, and Denmark->3% of GDP)
- promote environmental sustainability with
higher share of renewable energy sources, lower
greenhouse gas emissions
- subsidies in social security contributions for
the young
- investment incentives for businesses that
employ young and jobless

7. C. Political Challenge:
‘WE, THE PRECARIAT”
➔ Address the precariat as a ‘class-in-itself’ and unaware
of its shared characteristics. It is in no way tied to the
political left but vulnerable to the extreme right. Unify the
aspirations and the claims of the precariat under a
new-class umbrella, that will question the existing
institutional and economic norms without being
surrendered to the sirens of the populist or extreme right.
➔ Open institutions and open parties. Incorporate digital
world with grass roots and collective actions on single
issues. Promote dialogue and continuous debate with all
societal and economic actors. Lead by example in the
realm of transparency. Youth Quota. Reform party
financing rules and abolish many of the privileges of the
MPs.