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  • I would like to introduce the first of our two speakers in this session

  • this is a person who was one of the founding members

  • of the Basic Income European Network,

  • which is now the Basic Income Earth Network made back in 1986

  • and who wrote the book "Real Freedom For All

  • What (if Anything) Can Justify Capitalism?"

  • turns out it's only basic income can do it.

  • (Sorry to give away the ending there)

  • he is also professor at the Catholic University of Louvain-la-Neuve

  • and he is seated to my right, his name is Philippe Van Parijs.

  • (Philippe Van Parijs): In order to move forward

  • we need two things at least:

  • one is the vision and the other one

  • is opportunism.

  • A vision of the future that is both desirable and feasible.

  • Desirable in the sense that it can be defended in front of everyone

  • not just on the basis of our specific tastes or interests

  • and feasible in the sense of sustainable all things considered

  • not in the sense of politically feasible, here and now.

  • In order to make the vision of the future feasible, we need opportunism.

  • We need to seize opportunities

  • and we won't seize these opportunities without a close collaboration between two sorts of people.

  • on the one hand, those I call the "botteurs de culs" — the buttkickers

  • and on the other hand the "bricoleur" — the thinkers or the fiddlers.

  • So we need two things : vision and opportunism

  • and to seize the opportunities we need two categories of people.

  • First, militants who push forward possibly with unrealistic proposals but driven by a sense of injustice

  • and on the other hand the people think about how to modify the system

  • to find the little crevices, the little spots where movement, where progress could be the introduced.

  • Of course most of these opportunities today can only be seized

  • where most of the action is, in terms of social policy, which is at national level.

  • And that`s the level at which most of the meaningful, concrete debates need to take place.

  • For example the debate alluded to several times this morning about the partial basic income.

  • The discussion is not a discussion between partial basic income and full basic income.

  • I personally I'm in favor, including as argued in that book

  • in favor of the highest sustainable basic income on a scale that is largest politically imaginable.

  • That's the ultimate objective.

  • but meaningful discussion is not about partial basic income vs. full basic income.

  • The meaningful discussion as already hinted at by several today is between, say,

  • the next step consisting in a partial basic income versus the one proposed by Ronald (Blaschke)

  • consisting in sort of a full basic income for children and young people

  • and keeping things as there are for all the others

  • or as proposed by the European Anti-Poverty Network: an adequate generous minimum income

  • that would remain family-related and means-tested.

  • These are discussions which need to be conducted in each particular context

  • and the answer that is appropriate say for Germany

  • is not necessarily the one that's most appropriate for Greece

  • where there may be more urgent things to do than

  • say a partial basic income or basic income for children

  • and not the same as in Brazil or Ireland etc. etc.

  • But what I want to talk about today briefly is something that can be done

  • and that should be done in my view at a level of power that has emerged in matters of social policy only recently

  • namely the European Union.

  • and it is therefore something that this particularly relevant for the new network that is about to be born.

  • I tested the idea at the BIEN congress in Munich nearly two years ago

  • and then I published a short paper presenting the idea under the title "The Eurodividend"

  • a small paper that has then subsequently been translated into a number of languages.

  • What do I propose there?

  • I propose the introduction of the basic income

  • as an income that is strictly individual, unconditional, universal

  • at the level of the European Union

  • and funded essentially by VAT (value-Added Tax) of 19% which is about 10% of European GDP.

  • Why do I propose that? For 4 reasons which I'll quickly sketch.

  • The first reason, in a sense that the opportunity that is being created, is the sustainability

  • the stabilization of the Eurozone.

  • Before the euro was born economists, in particular American economists said:

  • "You are crazy Europeans! This is never going to work!

  • Our dollar works for all 50 states

  • despite the great differences between the states in their economic development and economic fate,

  • it works because we have two powerful stabilizing mechanisms.

  • One of them is migration between states

  • and the other one is transfers across states, organized at the federal level.

  • You don't have those!"

  • Migration is about six times higher between states in the United States

  • than it is today between the member states of the European Union.

  • And transfers across states - depending on how they are monitored

  • are between 20 and 40 times larger in the US than in the EU.

  • So the American economists from the left to the right,

  • from Milton Friedman to Amartya Sen were warning:

  • You are crazy! This is never going to work!

  • And in Europe people said: "mind your own business!"

  • You don't want the Euro to compete with the dollar,

  • you want to keep using the dollar as the only major reserve currency in the world

  • and you try to prevent us from doing what's in our interest.

  • Now of course people have more hearing for that

  • and realized that something needs to be done, that something like a stabiliser is needed.

  • Now the stabilizer we will realize in Europe

  • will never be migration to the same extent as in the US

  • for one main reason, not the only one, which is that we have so many different native tongues

  • and therefore migrating from says, Athens to Munich, is quite a different experience though the distance is not larger,

  • quite a different experience from migrating from Detroit to Austin, Texas.

  • So we need the other mechanism absolutely indispensable for the stabilisation of the euro :

  • And that other mecanism is (financial) transfers across member states.

  • and the form it should take, if it is to be generous and sustainable,

  • is not the form of "Finanzausgleich" — that is of a transfer from one state to another one

  • but it should take the form of "Soziale Sicherheit" — a form of interpersonal transfer across the borders,

  • something of course that has never happened in the history of mankind

  • but which is indispensable for the survival of the eurozone.

  • That's the argument number one.

  • Argument number two says: well, we don't only need migration, interstate migration

  • it is not only improbable on the massive level, like in the US

  • It is also undesirable, precisely because of the diversity of languages and cultures

  • thus integration is a far costlier process in Europe than it is in the United States.

  • Costlier both for the people who have to move

  • and for the communities that have to welcome them.

  • And a basic income on the European level would be the stabiliser of the population,

  • it would enable people in Bulgaria or in Romania and in other places in the world

  • not to be forced to move to the more affluent cities in Europe ;

  • and be able to stay, with a smaller income

  • but with a greater quality of life, closer to their families, closer to their roots.

  • So second argument is the stabilisation of the population which itself is desirable.

  • it's not that free movement of people is not beneficial in many cases

  • but it shouldn't be the sort of forced movement

  • where people are driven by the inability to live and minimally decent life in their own place.

  • That's argument number two.

  • Argument number three is of general sort,

  • and something that we have seen coming for quite a few decades now

  • it is the inversion of the relationship between the market and democracy.

  • In the past our ideal of the world

  • was one in which we saw the market playing its role,

  • but within the framework of democracies that set the rules of the market game.

  • Increasingly what has happened as a result of globalization

  • and more acurately as a result of the single market with its four fundamental freedoms

  • is that is no longer the market that is embedded within a democracy

  • but it's a set of democracies that are submerged in the market

  • and submitted to the rules of the market, competing with each others in terms of competitiveness,

  • in the way in which firms use to do when still do.

  • So states are transformed into firms.

  • And of course one implication of that, among many,

  • is that it becomes increasingly difficult for our nation states to do,

  • what some of them didn't do too badly in the past, which is redistribution.

  • Because today because you are immersed in the larger market,

  • if you have a generous redistribution system, where you tend to lose the net contributors

  • and you tend to attract the net beneficiaries,

  • so the system thereby making your welfare state more fragile.

  • So argument number three is that we need to organize,

  • if you want to keep these four fundamental freedoms, the freedom of movement of the people

  • at least part of the redistribution must operate on a larger scale.

  • Fourth and last argument can be formulated as follows.

  • It's often said that the legitimacy of the European Union, which is now under threat,

  • will only be sort of reinstated, will only be revived through results.

  • Results, results, results.

  • Its not by the changes of the institutions or all singing the European anthem

  • but by doing things for the people.

  • But doing things for the people that's not trying to implement TTIP (Transatlantic Trade and Investment Partnership)

  • free trade arrangement with the United States with a vague promise of 0.4 percent increase in growth

  • and God knows whom this growth will benefit.

  • No.

  • Results also means and must mean in the first place today, as was well put also by the EAPN's representative today,

  • we need a caring Europe.We need a Europe that is perceived as caring by the citizens.

  • And it can only be a caring Europe, if it provides an envelope, a floor, a secure floor to the people.

  • And its only in that way that the European Union will regain the hearts and the allegiance of these people,

  • if it is perceived in a tangible way, as doing something that is fair to all the people

  • and not only the economically more powerful among Europeans

  • So these are the four basic arguments in favor of the Eurodividend.

  • Are there objections to this proposal?

  • Of course there are objections, hundreds of objections to it

  • just as there are thousands of objections to the the basic income in general

  • During the 30 years I have been fighting for the idea, arguing in favor of the idea,

  • I certainly must have heard about 1,584 objections to it.

  • But of course there are many and they need to be answered.

  • Some of them are serious objections and I'm sure you will raise some of them later today.

  • Given that I have only 45 seconds left

  • I'll just mention one objection which I tackle briefly

  • in the very last paragraph of the paper in which I present this idea — which you can easily find on the web.

  • Last objection is: is this not utopian?

  • Of course it is.

  • in the sense in which the European Union itself was utopian, until not so long ago

  • and also in the sense in which the social security system was utopian

  • before Bismarck put together its first building blocks at the end of the 19th century.

  • But Bismarck did not create his pension system out of the kindness of his heart.

  • He did so because people started mobilizing in favour of radical reforms across the whole of the Reich.

  • He was trying to unify.

  • What are we waiting for?

  • What are we waiting for?

  • Thank you!

  • [Kudos Vahur Luhtsalu for the subtitles]

I would like to introduce the first of our two speakers in this session

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