The petition below was submitted to the European Parliament on Tuesday, July 21, 2015. Next, the Committee on Petitions will judge the petition's admissibility. Decisions will be posted here.
Creating a data driven economy within the European Union
Problem
When lending businesses receive the privilege of bundling the services of "storing & transacting" money with "borrowing & lending" money, consumers seeking only to store & transact their money (where market risk=0) are unjustly forced by the receiving firms to convert it into capital (where market risk>0).
Unfair to other competitors of capital
Firms who exploit the privilege of bundling the aforementioned services are in receipt of an unfair government subsidy to their cost of raising capital insofar as all other businesses must aggressively engage the capital market's supply side to raise the same amount. In other words, lending businesses that conveniently raise capital by placing the word "bank" above their front door have only to wait for people who are seeking safe storage and a modern means of payment to walk in and lend money to capitalize loan portfolios. In contrast, all other businesses must produce a business plan, financial model, and incur significant costs to raise capital from prospective investors through the sale of a rigorously-researched, numerically-defined opportunity (rate of return). Hence, receiving a "bank" charter is to receive an undue subsidy to the cost of allocating capital to a lending business.
Restrictive to an economy’s growth
When firms’ access to capital is predicted by the charter they receive, an economy’s growth is restricted since capital is not allocated to producers the market has simply measured to produce the most significant yield.
Falsely assumed creditworthiness & socializing default risk
Also, extending lending businesses the further privilege of including the notes stated on their balance sheets to be a part of the money supply is unjust because it falsely measures the value promised as judged by a note's purchaser (intellectual) to be equal to the physical value delivered by a producer within the same economic system (e.g. value expected by lender = value delivered by plumber).
Solution
In pursuit of creating a fair and competitive digital single market for capital, the European Commission is requested to deploy a payment platform that separates "transacting & accounting" from the services of "borrowing and 'lending", thus causing creditworthiness to be measured rather than chartered. In addition to prioritizing the production of a scientific measure of the cost of capital, a payment technology that enables users to automate payments such as taxes, interest expenses, and dividends will provide the much-needed economic capacity and expediency a growing population requires support from.
Specifically, an automated cash-accounting function will allow businesses competing for capital to publish their financial performance online whenever they wish. As a consequence, capital will come to be allocated with confidence and reach areas of the economy that were previously undetectable by investors seeking a return. Through the efficient allocation of capital, the demand for labour will be boosted, thus leading to increased employment and economic growth. Employing a system-wide accounting technology directly achieves the goals outlined by the Digital Agenda for Europe, and especially to the Digital Economy: “Europe's businesses want us to offer them a secure environment, where they will be able to enjoy the benefits of the big data revolution, of cloud computing and cutting-edge technology -and they want to know how they can access finance and support” (https://ec.europa.eu/digital-agenda/en/digital-economy). Universal access to a distortion-free and efficient capital market with the help of technology and big data is precisely the aim for a cross-firm, cloud-accounting technology. More precisely, one of the goals of Digital Economy is: "Better access to capital, lower barriers to success" (https://ec.europa.eu/digital-agenda/better-access-capital-lower-barriers-success). The proposed application will help to maximize the circulation of capital because it *enables instant & universal access* to the most competitive rates of return signaled by the measured performance of producers.