May politics lift up its head

The fact that the momentous progresses of the European Union for the “ever closer union of European peoples” (Preamble of the Institutive Treaty, 1957) originated from deep crises in the unification process may seem a twist of fate. When there is a crisis the leadership is subjected to greater pressure to seek solutions aimed at improving the “governance” of this yet unaccomplished transnational community of citizens and States. The reason for these recurrent crises in the integration system resides in the inadequacy of the Constitution on which this system is based. The ongoing financial crisis and national indebtedness is caused by the fact that the political Union wasn’t established immediately after the introduction of the monetary Union twelve years ago, nor was an economic and financial Union endowed with institutions and procedures providing for uniform development within the euro area. Member States’ governments, concerned about their own sovereignty, weren’t ready to undertake such a major step. Now they are forced to. Walter Hallstein, one of the founding Fathers of the European Community, first president of the EEC Commission (from 1958 to 1967) defined as “the logic of things” the principle that imposes progress according to the motto “When you’re dancing you must continue dancing”. This principle inscribed within unification commitments stems from the “interior unity of economic politics, which is stronger than the free will of political powers”. Moreover, the logic of things doesn’t work as an automatism. The necessary progress caused by the logic of things, which triggers the overcoming of the crisis and in the last analysis even the new quality of the political system, must be the result of a coordinated decision taken by the political realm. The extent of this difficulty is evident in the desperate efforts undertaken by the governments of all 17 euro area Countries aimed at recreating the appropriate tools to contain the crisis while ensuring appropriate and sustainable management of financial policy at European level. The difficulty is also given by the number of protagonists that are necessarily bound to relinquish positions had been strenuously defended up to now. From the nucleus of their national independence, Member states have to grant another part of their sovereignty to Community authorities. They also have to find an agreement on the extent of their renouncement of sovereignty, and on the institutional measures that ought to be implemented to this regard. Finally, they must approve the revision of European Treaties so as to step up the federal action of the EU. If not, it won’t be possible to harmonize financial policies with Member States’ national budgets and adapt them to the needs of the monetary Union. Moreover, this perspective entails that Member States undertake a drastic reduction of excessive debt created in the course of the years for convenience, light-heartedness or avidity. Under the pressure of financial markets demanding increasingly higher and unaffordable interest rates on debts, the mostly indebted countries are compelled to redress their budgets. The partners of the Euro group, the European Central Bank and the International Monetary Fund provide support with guarantees and credits. However, it is a painful process that implies reforms and cuts to public spending leading to decreased services and increasing fiscal burdens. And if after the treatment there should be a glimpse of the return of competition and renewed wellbeing, there still is the risk of stagnating economic growth. Nonetheless, Euro countries with excessive indebtedness are called to undertake this path if also in the future they intend to participate to the common currency without damaging the work of the EU. Efforts undertaken at national level are encouraging, although the availability and the capacity to undertake all that is necessary is different in each Country. On the basis of the principle of the logic of things, it can be predicted that also at European level the proposed reforms will be adopted, for the creation of an economic and financial Union.