Green economy  |  Publications  |  01.12.2011

Why the Green New Deal is a Response to the European Debt Crisis

The article by Gerhard Schick, financial policy spokesman of the Green Party in the German Bundestag, explores the links between financial crisis, crisis of poverty and distribution and the crisis involving the climate and resources. As these crises are interlinked, it is correct to combine them and show the way out with an extensive package of measures - the Green New Deal.

The idea of Green New Deal stands on three pillars: financial market regulation, ecological modernization of the economy, and new social balance. However, the concept must be developed further because the situation has changed and new knowledge is now available. It is actually the currently emerging slowdown in real GDP growth, which could soon lead to a recession, forcing to take a position with regard to stimulus plans or the like. It is also important to place the current European crisis in the context of our response to the global economic crisis.

With this text the author intends to contribute to the improvement of financial market situation, the public debt, and the crisis of distribution by first analyzing the current situation in the financial markets, and, based on this, discussing proposals for the solution.



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