ECONOMY AND EUROPE
A seminary in Brussels on ”Social market economy”
At this time of profound economic, social and financial crisis, when unemployment and poverty are on the rise in Europe and austerity programs exacerbate the social consequences for many people, a workshop for dialogue on social market economy will be held today, December 14, at the European Commission in Brussels. The seminar is organized in collaboration with the Bureau of European Policy Advisers of the European Commission, together with the Church and Society Commission of CEC and the Secretariat of the Commission of the Bishops’ Conferences of the European Community (COMECE). Maria Chiara Biagioni interviewed for SIR Europe Frank-Dieter Fischbach, executive secretary of the Church and Society Commission of CEC.What is "social market economy"? "The term ‘social market economy’ dates back to the history of Germany. Theologians, as well as church-related and non-church-related economists developed a model for post-World War Two, suitable in the post-defeat period, intended as a model in-between capitalism and communism. The starting point was and still is that the economy is at the service of life and that it does not have a supreme value in itself. Social market economy is first and foremost an understanding of society aimed at balancing liberty and justice for all citizens. Thus it requires a strong state. It is the responsibility of the State to create and ensure a reliable framework for economic activity and competition. The state sets the rules. In this regard, the State – legitimized by a democratic process – is the common good and it is responsible for it. Today, however, this concept needs to be modernized and adapted to the questions posed by globalization, climate justice and by supranational governance structures. Of course, the social security systems in European countries represent a variety of proposals".Which situations are the Church most concerned about? "This profound crisis in Europe and at international level, that carries financial, economic and social consequences, is very complex. The Churches are aware that there is no simple answer nor solution. Problems are different from country to country. It can be said that the Churches are concerned about three major issues. First, the Churches are worried about the social consequences of the crisis on people! All indicators show that poverty is increasing and that the policy of austerity seems to worsen that trend further still. And here the churches can and should be present by giving active support to the people and by promoting policies aimed at fiscal consolidation whilst preserving social services, taking into account the social consequences of recovery measures. Second, we realize that this crisis is also undermining our democracy as well as the participation of people in society. A vibrant democracy is a very important value for our society, but now it needs to show that it can overcome the crisis. It must beware of not sliding into populism and nationalism, or in the emergence of new attacks or prejudice against foreigners, etc. And finally, the Churches are also worried that the process of European integration could be damaged if we do not find a sound way to recover from the crisis".Greece, youth and middle class unemployment. Do you really believe a solution is at hand? "Well, there must be a solution, but as I said, it won’t be an easy solution. Of course in Greece, fiscal consolidation should be coupled by an economic growth program. But, I wish to add a further reflection. In the month of November, a report published in the United Kingdom has shown very clearly that for citizens the payment of adequate taxes, is linked to their perception of the quality of their government: Countries in which people perceive high governance levels are also countries that have the strongest support for an increase in social spending. And this appears to be a challenging aspect also for Greece". What are the Churches’ proposals for a "Europe of solidarity"? "Let us return to social market economy and to the welfare state: a principle is to balance subsidiarity and solidarity, that is – as I mentioned earlier – the balance of freedom and justice. Both have to do with the dignity of the human person created by God. It means that every man must be free to conduct his own life and his profession, to contribute according to his possibilities to social life and share the fruits of his work with solidarity. And to provide some concrete ideas, based on this belief it can be said that European solidarity can be pursued through the Structural Funds, with a European regional policy, in which the strongest, richer regions support the development of less developed regions of Europe. For the Churches, concrete solidarity is expressed also by being in favour of the tax on financial transactions provided that the income derived from this tax may be used for social or ecological purposes. Of course there are other examples, but these provide an insight into what it the Churches are proposing".