The need for redistributive policies in the euro zone will become very significant

The need for redistributive policies in Europe will become very significant for several cumulative reasons: The expansionary monetary policy is leading to a sharp rise in asset prices and wealth inequality; The energy transition will require transforming consumption into investment, since much more will have to be invested without generating more income. A drop in consumption is particularly difficult for low-income households to accept; The energy transition will also lead to higher energy prices, which ha ve a particularly negative effect on low-income households; Lastly, the low wages at the bottom in a number of essential economic sectors are increasingly perceived as unacceptable. So there will necessarily be larger redistributive policies, but European countries may differ on the nature of these policies: increased public transfer payments to low-income households; increased minimum wage; increased taxation of capital and capital income