Assuaging EU Taxpayers
Tito Boeri, Bocconi University | October 15, 2008
Europe has a plan to bail out the banking system, but it might be hard to convince European taxpayers to pick up the bill. ++ In reality gross debt will increase, not taxpayer debt, and by saving banks we save million of jobs - yet strong opposition from national parliaments is still likely. ++ To convince taxpayers, leaders in Europe must do three things: punish banks and bankers by increasing competition, not withholding funds; provide government support to low-income families with mortgages; and reduce taxes for low-wage earners.
