Not just economics

Europe’s economic and political paths cross again. The crisis is still not over, but initiatives taken, especially in the last months, to try to address it, have shown growing interdependence among EU Member States, economic and social systems. Continental debate is now focusing on stronger political integration. Save Greece and the euro. This week’s events have been primarily centered on the Eurogroup’s approval of a 130 billion euro bail-out to Greece from the EU, ECB and the IMF (with 18 billion). A fund injection added to the 110 billion euro bail-out to Athens. The Union has taken the decision to defend the single currency and the 17 Eurozone countries, putting aside doubts and delays, want to avoid Greek’s default which could trigger a domino-effect. Considering that since 2008 also Ireland and Portugal have received direct aid from the Union and Spain has just implemented smoother budget rules, Europe has clearly taken a stand against speculations: notwithstanding financial costs the euro will be safeguarded. The ceiling of the firewall (the ESM), which should be of about 750 billion euros, will be re-assessed during the month of March. Common goals. The most authoritative voice in defense of integration is that of German Chancellor Angela Merkel. After being "absent" for too many months, during her recent visit to Italy, she had the opportunity to explain a "new course": "In a very competitive world- she said showing complete agreement with Premier Monti on the agenda- we need to grow and defend ourselves together! Europe has achieved many common goals, but accounts for just 7% of the entire world population": therefore more cohesion and cooperation is needed. In the coming years, Europe must focus on three issues: competitiveness towards countries such as China and India, jobs and fiscal consolidation". She also added. "The euro crisis unveiled weaknesses that we must now eliminate". Ms Merkel started talking about "political union". Not by chance, the German foreign minister Guido Westerwelle, the chancellor’s right arm in the German governing coalition, announced an informal conference in Berlin (March 20) on the "European Constitution". In fact few leaders are happy to resume this topic, which sounded outdated by the approval of the Lisbon Treaty. However with talks about the Constitution the political union issue resurfaces. "Growing poverty". These issues emerged during a delicate moment caused by various reasons. Suffice to mention French presidential election, whose first ballot is set on April 22: election campaigns are becoming heated and Europe, together with other super-national issues (immigration, economic competition, energy, climate..) is tackled with strong populist feelings. Meanwhile, there is an increase in those in favor of Tobin tax, or a tax on financial transactions, that would shift the crisis burden from the citizens also to banks and financial systems. Commission President, José Manuel Barroso, has often taken a similar stand. In his speech at the Plenary Session in Strasbourg on March 13 he mentioned this and other topics. "Poverty is growing in Europe and this calls for social inclusion and growth strategies to favor employment"; we must protect those who are in trouble, Barroso said relaunching Europe 2020 agenda on sustainable growth, labour, innovation and research. The Head of the Executive himself stressed the need to "fight against tax evasion and avoidance" by toughening measures against these types of "fraud" to recover resources " in favor of initiatives for young people and small and medium enterprises".Tobin tax, single market. Barroso repeated the "need to introduce a tax on financial transactions to fairly share burdens and responsibilities" of recession. On the same occasion EU Council President Herman Van Rompuy, stressed the results achieved during the Summit in March 1-2, by explaining the steps taken by the Union to find tools to tackle the crisis and prevent future ones. He also spoke about "real economy"; of support given to enterprises in trying to relaunch development and on the duty to complete the single market (trade exchange, services, infrastructures, broadband..) and domestic labour market reforms. " We must regain investor and consumer confidence- Van Rompuy concluded: this can help boost growth and employment".