Green Investment Pact – economic and fiscal un-sustainability? Part 2/2

This article reflects the second subhead of the GIP- Sustainable structural reform to strengthen the European economy

 In this part, we are going to introduce the second subhead of the Green Investment Pact, proposed recently by Greens/EFA. This part deals with ways of increasing competitiveness and employment in the specific fields.

First of all, we have to realize what competitiveness presents. The competitiveness in the market has become the dogmatic positive expression of survival in capitalistic society. Or in other words, just the strong will survive. It is not actually the true that everyone has the same conditions in doing the business in the free market; there are always some more advantaged. The competitiveness divide people and strive for being better than the others; and this does not always bring the satisfaction to more actors than the first one. Moreover, it blocks the access, and therefore the make of living of enjoyable activities and production of others actors. We should get rid of this dogma, of this sporty way in securing the proper functions of economy in any community. Not the increase of competitiveness, but creation of opportunities, supporting creativity, and ease of conducting beneficial activities are one of the core principles to strengthen the economy.

For this reason it is very essential, as also the GIP states, to have effective environmental regulation. Environmental protection should be the inclusive part of any production and business processes. It cannot be done through strict vindictive regulation, but through the capacity building and investments into the R&D. The business-as-usual must be provided the solutions of transformation of its harmful processes and involved in creation of green businesses. The sufficient research may lead their activities to desirable direction rather then threaten the jobs and living of employees. Despite the EU aim for 3% budget for R&D failed, it should continue to follow it, even more ambitionize its goal.

Energy efficiency is substantial in reducing the consumption and use of energy. In regard to this issue, we have to still go for the decentralized system of clean energy production and use of renewables. Such system would not lead just to decrease of the oil and foreign dependence, but also to creation of new local jobs, higher security, self-reliance of the communities, lower emissions and costs. The most convenient would be investments to research and consequent production of transitional technologies and electromagnetic energy devices, those are easily able to replace costy dependence on oil, gas, coal or nuclear. These low-cost and low- and zero-emissions solutions, invented and proposed by Greer and Loder, are, unfortunately, still classified hence the lobbying of dirty business and economic interests of great powers are stronger and in conflict to people´s needs.

Clusters bring many advantages for businesses, e.g. lower costs, higher specialization and competitiveness, or better cooperation and information. However, such cluster symbiosis may be very vulnerable in the case of crises in the specific field, as well as in the impression of the monopolization. Therefore, various kinds of activities and broader focus should be supported, as well as their green innovations and way of cooperation, networking, communication and trust building, all with regard to the potential and needs of particular and closest regions.

The GIP also states the estimations of EC that the employment potential of resources and energy efficiency could be more then 10 million of new jobs. The higher emission targets are proportional to more new jobs. Such policy should make a provision of relevant education and qualifications necessary for making the jobs more attractive and professional.

Finally, there is a note of increasing of green public procurement. The substantial assumption of greening the procurements is willingness of local and national governments to care of environment, which is to certain extent influenced also by EU´s environmental policy and legislation. There is a considerable corruption and unfair selection in many states within the public procurement. It would be favourable to make the process more transparent and create stimuli for tendering for environmentally- and socially-sound products.

To sum up the both articles, the Pact, on the one side, brings quasi greening of certain activities necessary for encouragement of investments and perspectives of green jobs, but on the other side, it continues in supporting the current dysfunctional economic model. The solutions must be looked for in adaptations, transformations and building-up new economic and organizational patterns in sustainable flow. It is advisable to recognize between plasters and medicine.