A good model for the EU

“In the relationship between men and things, we are too much inclined towards things”, said Carlo Altomonte in the opening of the interview with Gianni Borsa (SIR Europe) regarding the economic crisis, stability of the euro currency and future of EU integration, starting with the reading of the document “A European Community of Solidarity and Reponsibility”, recently presented by COMECE, the Commission of the Bishops’ Conferences of the European Community (www.comece.org). Altomonte teaches Economy of European Integration at the Bocconi University in Milan. He also attended the Catholic University in Leuven prior to his collaboration with the Commission for Monetary Affairs of the EU Parliament and with the United Nations. A few months ago he was appointed consultant for the European Central Bank. Professor, a question before delving into the COMECE document: at what point is the crisis? “Ineffective or incomplete answers to the serious economic and financial crises of the past years have triggered serious questions on the future of the single currency, burdened by the problem of national public debts. But the European Council of past December 8-9 has opened the right door, which leads to two priority measures. Firstly, the new intergovernmental treaty stipulating strict budgetary discipline of member states, the Fiscal Compact, is being drawn up. This solution is insufficient alone and rating agencies have underlined it in their own way with the latest downgrade. Secondly, a permanent rescue-state tool is needed, the so-called European Stability Mechanism (ESM, that largely differs from the present European Financial Stability Facility, EFSF), due to become a kind of European monetary fund capable of interacting with the Central Bank in Frankfurt with an initial endowment of 500 euro, tasked with promoting market confidence in euro-zone countries. The European Council of January 30th is expected to provide answers to this regard. However, the draft roadmap is credible”.As relates to real economy which prospects do you envisage? “Significant improvements are not expected in the first semester. But if single states were seriously committed in the enforcement of rigorous budget and coordinated reforms for development (including investments) at EU level there could be an improved overall situation in the second semester”. Saving the euro currency in order to save European integration. It is an undelayable objective, to be urgently and determinedly pursued, or is it an exaggeration launched by economists and by alarmist media? “There is no exaggeration. If the euro currency should collapse Europe would take a half-a-century leap backwards. There would be a vigorous resurgence of nationalisms, protectionism, and international tensions. Nobody would gain from such a scenario. With the hope that the leap won’t be seventy years backwards…”.“The common market should evolve. And it should evolve in the direction of social market economy, so that the EU may become a community of solidarity and responsibility”. These are the words spoken by Cardinal Reinhard Marx, COMECE vice-president, who presented the recent document of European bishops. Is it still the time for social market economy? “To say the truth, this reading of economy is one of the motivations for my passionate interest in the European Union, since I was a young man. Social market economy, which is also provided for in the Treaty of Lisbon, is probably the most modern form encompassing a drift from capitalism. It reconciles free economic initiative with social and environmental awareness initiatives. It is the role model of sustainable economy, which should obviously be always shaped according to national situations and to the changing historical frameworks”.Economic systems are increasingly interdependent, and thus ongoing challenges – the bishops say – can be efficiently addressed not at national but at international or even at world level. It is just utopia? “Indeed, the concrete problems arising day by day coupled by surging economic and political interdependence demand global responses. The question is to identify new and transparent decisional levels for an economic and political economic dimension at global level”.