Abstract

There are three key variables explaining the hard and long crisis in Europe: a) the collapse of the share of income distributed to work; b) the fall in total investment; and c) the low employment rates in several European countries, especially in Southern Europe. All of this has led to a crisis due to insufficient domestic demand. The second issue addressed concerns the fragility of production chains in Europe, after the delocalisation of production processes from European countries, which was highlighted by supply difficulties during the Covid period. This raised the issue of European strategic autonomy in key areas. The article underlines the need for a paradigm shift in economic policy, as well as for the introduction of a new development model based on the capability to satisfy the essential needs of European citizens starting from the production of necessary goods and services, with a coherent economic policy also on the supply side, through the increase in investments, and the subsequent introduction of quality jobs.