EDITORIAL
Three steps to enable the EU to exit the crisis
Over the past three years, that correspond to the acute phase of the world economic crisis, countless terms were conceived within the European Union – corresponding to an equal number of initiatives and measures aimed ad tackling the ongoing recession, safeguard public finances, enterprises, savings and provide an answer to tragic unemployment rates. It’s even hard to find one’s bearings in the midst of this “crisis vocabulary” that ranges from the euro plus Pact to the European Semester, from the European Financial Stability Facility to Europe 2020, from the Procedure on excessive deficit e to national reform programs, to the Stability Pact, to the bank stress tests or the Report on Annual Growth. Some time ago, the EU Commission, in the attempt to provide an interpretative code for this vocabulary, produced a lengthy document (that equally requires decoding), which at the entry Europe 2020 explained that it consisted in a plan to overcome the stage of recession, by prompting “intelligent, sustainable and inclusive growth” over the next decade. Europe 2020, states the same document, “is based on a simple and effective mechanism”. It will be necessary to remain vigil on its effectiveness, while its simplicity is dubious, as given strategy is grounded on further “5 priority objectives”, 7 “flagship initiatives” and as many as 10 “concrete commitments” for 2011. Given its complexity, economy is unquestionably conveyed via specific terminology, technical features, operational decisions, which the man on the street finds unintelligible. But it’s also true that as it has effects on the daily life of individuals and families it requires a political democratic system upstream and the ability of “being understood” downstream, so that citizens won’t feel as if they’re being bypassed nor as the victims of the decisions taken in the secret rooms of economy and finance. The developments occurred in numerous countries, marked by the protests of the ‘indignados’, with riots across the streets of Greece, should act as a stern warning. Also the outcomes of recent national elections, which overturned the government majorities of countries direly hit by the crisis, notably Ireland and Portugal, should prompt serious reflections. And further political surprises cannot be ruled out. In Athens the government was forced to resign. Italy is on the watch; in Spain we are awaiting the results of the upcoming political elections that will mark the exit of Zapatero. Germany and France have witnessed, on several occasions, popular discontent towards leaders such as Angela Merkel and Nikolas Sarkozy.Considering the extent of the crisis, and bearing in mind what the European Union, the Eurogroup (17 countries adopting the single currency) and EU Member States have sought to overcome the present standstill it may be possible to identify the next steps. In short it can be said that Europe can, or rather must, save Greece (numerous initiatives have been taken in this direction and further support is expected with the establishment of the new coalition government). Avoiding the problem of national finances’ stability from extending to other countries, keeping under control, also thanks to the International Monetary Fund, the situations at risk, like Italy’s, continuing to pursue the reinforcement and regulatory process of the European financial and credit situation; concretizing a longtime invoked economic governance (common priorities, single markets, extra-EU competitiveness…) identifying ways to relaunch growth, which represents the true answer to the crisis, focusing on real economy, world trade, common strategies in the areas of energy, raw materials, infrastructures, training and research. If these are the possible scenarios other elements also ought to be taken into account. But two of these are evident. The first is that in an economic system like the EU’s, marked by a strong interdependence of markets and national governments, coordinated decisions (namely, governance) can only increase, gradually expanding to include areas that previously were not jointly addressed, such as the taxation system. The second aspect is linked to the previous one, namely, State sovereignty in the economic realm will have to gain new force, notwithstanding the respect for national interests and for the subsidiarity principle. It is paramount to give new impetus to solidarity, that remains at the basis of the great European project.
