The return of politics

Nobody expected that the meeting in Strasbourg of German Chancellor Merkel, French president Sarkozy and Italian premier Monti would deliver long-lasting results for the financial crisis, which has affected Europe for much too long. Unquestionably, the enlargement of the “EU directorate” to encompass the third – as relates to extension and importance – EU area country can be understood as a significant sign to the markets, namely, politics is in the front line again. Indeed, EU institutions have sought to implement economic policy initiatives to curb the financial recession, stabilize national budgets and influence real economy. But now that two continental giants, Germany and France, risk a blow by the same markets, the time for mediation, negotiation and indecision has come to an end. The presence of economist, Europeanist statesman Mario Monti in Strasbourg is a sign in the right direction. While writing, a large slice of German government bonds are unsold, while their returns reached over 2%. In the meantime, French bonds yields are at 3.6%, Spain’s rose to 6.5% and Italy’s sky-rocketed to almost 7%. The whole of Europe is in a state of grave concern, also because bond yields of countries with solid national finances such as The Netherlands, the United Kingdom and Sweden are rising too, while the euro currency is weak. These are significant signs.It is also true that in spite of serious circumstances such as the present one we ought not to loose track of data on real economy (starting with GDP, which in fact, is not encouraging), and we must continue believing in the possibility of a joint answer by European governance, of which Commission president Barroso is championing the cause, backed up by the European Parliament. The package of measures indicated by the Executive on 23 November follows that direction, namely, that of coordinated economic – and maybe – fiscal policies, road maps for rigorous national budgets and for growth (namely, investment), the introduction of eurobonds, the reinforcement of the European Financial Stability Facility (EFSF) and rightful focus on the social dimension of the crisis and employment. Thus the meeting in Strasbourg is a political message, and at the same time it must follow the procedures that will substantiate governance at EU level. In fact, a new summit of the countries that have adopted the euro currency has been scheduled for next week while the Council of the Heads of Government or State of EU27 will take place on December 9. Despite progress, second thoughts (notably Germany’s and north-European countries’) and renewed impetus, the idea that the interdependence of EU economies and the pressure exerted on the Old Continent by globalised economy and finance demand joint response is finally gaining grounds. There is no other solution, even those who until now were hesitant or on opposite fronts had to admit it. There is the need for financial and economic answers that envisage renewed, determined political integration, which the European Churches have called for on several occasions in the past weeks. A united Europe, capable of preserving and enhancing diversity, in full respect of national cultural and social features is a necessary target, like never before.