Public Investments... To Do What? Beyond ‘Bread and Butter’ Social Democracy

The chapter discusses the results of the 2014 EP elections, noting that public opinion seems to lean more in favour than against austerity. Yet, the vast majority of economists (and most progressive observers) are convinced that new and large programs of public investments are necessary to avoid “secular” stagnation in Europe. Tackling this conundrum requires a new communication strategy, whereby fiscal policy is not just a matter of spending public money. Rather, public investments should be framed as part of a larger view, encompassing in what kind of society we wish to leave, and what role should the public sector play within it.