Committee on Economic Affairs
The issue of income disparity in the European Union:
The poorest 20% of the European population have 5 times less income at their disposal than the top 20 % indicating an alarming tendency towards income disparity and social exclusion. With nearly 1 in 4 European citizens living at risk of poverty or social exclusion, how can European countries change this trend and improve the quality of living for individuals in the lower parts of the wealth distribution chain?
The Model European Parliament,
A)Aware of money devaluation and inflation concerning consumers, employees and the member states,
B)Noting with deep concern the economic policiesof the ECB in the recent period, such as but not limited to the distribution of bonds and interest rates,
C)Realizing that the different level of education, including re-education, causes income disparity and may lead to unemployment,
D)Keeping in mind that the current child-care system limits the chancesfor children, who have a lower socio-economic background,
E)Believing that tax systems benefit affluent individuals and institutions, where the income growth of the top docile is considerably faster than that of any other,
F)Alarmed by the lack of cooperation between the government and smaller companies,
G)Concerned about the numbers of companies who change their location in order to avoid higher taxation,
H)Deeply concerned about the amount of citizens at risk of poverty, especially those dependent on pensions and single person households with dependent children,
I)Alarmed by the cost of health-care in some member states and the effect it has on those that are at risk of poverty and those who considerably suffer due to their economic status,
1)Authorises the Stability and Growth Pact (SGP) and the European Stability Mechanism (ESM) to implement stricter fiscal rules and legislation regarding risky economic imbalances;
2)Proposes the ECB to target the maximum inflation rate of ca. 1.5 % and a minimum inflation rate of ca. 1 % to prevent both extreme inflation and deflation for purposes of price stability;
3)Urges the ECB to adapt measures for the following three years to combat the “Euro-Crisis” such as:
i)Taking a careful approach to lowering interest rates on bonds given out,
ii)Limiting the distribution of bonds, focusing primarily on long term stability, as stated in the Maastricht Treaty;
iii)Extending Quantitative Easing to reduce risk for countries with a debt containing bonds with high interests and lowering interest rates;
4)Congratulates the Positive Money Organization and draws the attention of the ECB to the organization’s goals;
5)Confirms the foundation the European Agency for Cooperation in Education and Labour Affairs (EACELA) which serves as a labour agency on a supranational basis, an education advisor for institutions and individuals and as a Europe-wide job data-base and:
i)Advocates for more investments in public education by hosting a bi-annual conference of the member states Ministers of Education on further improvement,
ii)Commences a multimedia information campaign on education for future success and options of adult education;
6)Urges member states to enlarge investments in an affordable public education system and adult education and supports the establishment of an adult education programme that cooperates with employers and the EACELA in order to ensure more equal opportunities for citizens and to secure proper education for all in underdeveloped regions;
7)Drawsthe member states attention to establishing a better all-around child-care system by:
i)Endorsing the Barcelona targets and suggesting the extension of free childcare to 30 hours a week,
ii)Increasing scholarships for students in secondary education,
iii)Ensuring the possibility of more flexible school opening hours;
8)Recommends the member states Departments of Education to further educate staff working with small children;
9)Emphasizes the importance of the European Commission report on early school leaving and the measures it presents and suggest the broadening of it by raising the age of compulsory education and issuing funds that facilitate it;
10)Encourages member states to find a point where taxation cuts allow large investments but also let the member state prosper on revenue which shall by known as Point of Public Prosperity;
11)Encourages the member states to lower taxes for small and medium companies;
12)Designates a group of experts to discuss the possibilities of cooperatives for small businesses with means of enlarging their competitive capacity;
13)Reaffirms the importance and relevance of the anti-tax avoidance directive;
14)Encourages member states to allow the retired to work in part-time jobs by decreasing paid income tax after retirement;
15)Expresses its appreciation of the Pan-European Personal Pension Product (PEPP) and recommends the EU to further endorse it;
16)Endorses the European Commission to further support the EU Health Policy with the focus on quality healthcare being more affordable paid by the ESESF;
17)Requests EU member states to organize medical screenings in each region, thus preventing the spread of diseases;
18)Congratulates the Economic Committee on creating the European Socio Economic Stability Fund (ESESF) for financing the above listed measures;
19)Instructs the president to forward the resolution to the European Parliament, the European Commission and the Council of Ministers.