4. THE MODEST PROPOSAL – Four crises, four policies

The Modest Proposal introduces no new EU institutions and violates no existing treaty. Instead, we propose that existing institutions be used in ways that remain within the letter of European legislation but allow for new functions and policies.

These institutions are:

· The European Central Bank – ECB

· The European Investment Bank – EIB

· The European Investment Fund – EIF

· The European Stability Mechanism – ESM

Here are the four policies that will re-deploy the above institutions in a manner that deals a decisive blow at, respectively, (1) the banking crisis, (2) the public debt crisis, (3) the under-investment and internal imbalances crisis, and (4) the social emergency crisis afflicting countries were absolute poverty is becoming a major issue:

Policy 1 – Case-by-Case Bank Programme (CCBP)

Policy 2 – Limited Debt Conversion Programme (LDCP)

Policy 3 – An Investment-led Recovery and Convergence Programme (IRCP)

Policy 4 – An Emergency Social Solidarity Programme (ESSP)

Read Section 5: Conclusion – Four realistic policies to replace five false choices