9058009903

CHAPTF.R IV

55

86230

(111) ę.£"fi££j..fLQD£ • Onoe the empl oynftnt-rat.fi t.argftts hav« heen f1xed, t.hey hec orne a standard to which t.he polides that. each single country int.ends to undert.ake are contrast.ed . Thns, t.he pollcy opt.1 ons can he ranked accorriing to t.helr 'merits' 1n teras of joh-creat. I on .

( 1 ^v ) Trans f er Sj ewa r d sj and ^A furt.her step -

prohably t.he most crnclal ..one hut. that .whlch presnpposes already a go od deal of sol Idarl ty- can be posslbly taken:    t.hat.

of dist.rihut.1ng Euro pean sol idari t.y fnnds .proportiona 1 1 y. to t.he gap which ex1sts hetween the actual unemp 1 oyment. rat.e of each country and the unemp 1 oyment. .rat.e whlch is commonly st.ipulat.ed for each country.

This system is such as t.o push each country, also t.hose which are bet.ter off froi t.he point, of view of emp 1 oy m en t. _f to aim t.o furt.her 1mprovement.s- 1 n t.helr employment. s1t.uat.1on; t.h 1 s won ld automat, i cal ly Imply, for t.he count.ries which are het.ter off from the eraployment. point, of v1ew, praot.1 cing morę expansive polides, whlch is exact.ly what. is correct to piirsue. They can, however, choose not. t.o do t.hls, hut. t.h en t.hey will he 1*pl ici tly ohliged t.o transfer resources t.o the count.ries whlch are worse off from t.he point. of view of employment. On t.he ot.her hand, we have to recall that. t.he t. arget.s - and, In partie u lar, t.he env1saged decrease 1 n the European average unemployment. rat.e have to he commonly agreed. As a consequence of all t.hese condi t.lons , the danger of hav1 ng inflat. ionary pressures due to overaahi t.ious expansive t.arget.s is unllkely t.o emerge. This amounts to a system of t.ransfers, but. also t.o a system of Implicit. rewards and penalt.ies. The effect.s of t.his k1nd of policy In t.erms of favonring a great.er homogeneit.y among count.ries are qui te e v i d e n t. .

5 . llif.„Tiftftd f nr a nftw££r o - £91 Ifligs : To r eduoe

For many reasons, most. of which have heen already considered, t.he t.radit. 1onal expansive polides do not seem t.o he able to give r1se t.o t.hose processes which should lead to higher levels of employment and income. What Is requi red is polides hased on a new and morę advanced not.lon of what t.he public sect.or should do In a rapidly and deeply changing f ramework.

The t.radit. i o n a 1 macro-pol Icles which were followed In t.he la te 1950's and 1960's, t.hough successf u 1 i n several respects, ha jve never heen complet.ely Keynesian In t.helr splrlt.. These polides, for a numher of reasons, some of which have heen recalled ear 11 er, have successfully ensured an 'expansive fraiework' and a sa 1.1 s f a c t.ory enough cont.rol of business cycles hy nsing flscal and monet.ary t.ools hut., 1n the all, stat.e 1nt.ftrvent.ion has lacked one aspect. whlch, in Keynes¹s splrlt., should he regarded as essent.ial and prima ry:    t.he role

that t.he stat.e should play in market. economies is to