The EU President Jean-Claude Juncker has announced a €315 bn investment scheme is yet another attempt to try to kick-start the economy claiming this will 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 has been we keep using the same theories that are employed every time and 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 does 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 a rising third-party trend in politics that our computer has been warning comes in 2016. There is a new crop of politicians rising who will have the right ideas of changing the old and in with the new. There is hope we can see political change, but that will not come without economic pain.