A trust capital

“A European Community of Solidarity and Responsibility” is the title of the statement of the Commission of Bishops’ Conferences of the European Community (COMECE) on the EU Treaty objective of Social Market Economy, which has become one of the treaty objectives of the European Union since the entry into force of the Lisbon Treaty. The bishops thus feel called to convey their position as a contribution to the ongoing debate on the significance of this concept that links the political, economic, labour and social life of EU countries.The cultural foundations of social market economy. European bishops take position on the concept of social market economy, since “its source lies in the Christian and Western understanding of the human person” and in the Greek, Roman and Biblical heritage that underlies “the ethics of justice and the ethics of charity”. There ensues that “In its development towards becoming a social market economy, the European Union can build upon traditions that are to be found in all the Member States”.Voluntary action. As a formulation, the concept of social market economy is shared by all European states, despite terminological differences, namely: “wide-ranging freedom of the market associated with the instruments of the competitive economy together with the principle of solidarity and its mechanisms for the promotion of greater social equality, i.e. far-reaching social protection on the part of the State”. However, for the bishops, “a society cannot function on the basis of legal claims alone, but needs space for generous giving, especially in what concerns the family. An excess of State welfare, by contrast, engenders dependency and obstructs the assumption of individual responsibility, active love of neighbour and solidarity”. But “the form of solidarity organised by the State is reliable, enduring and therefore necessary”. However, it is not enough, because it lacks in particular “the aspect of voluntariness” which is “indispensable inasmuch as it demands the moral awareness of the individual and significantly contributes to the creation of the ‘trust capital'”.Market economy and competition. “A well regulated market, which is truly guided by competition, is an effective means of achieving important goals on the path towards justice”. Moreover, “the distortion of competition through the abuse of economic power or public aid must be combated effectively or prevented by the legislative and executive branches of the European Union”. A stable, “controlled and regulated” monetary system is therefore needed. However, “founding economic activity on the sole objective of profit maximisation is misguided”. The bishops appeal to “all actors in the economic sphere – top management in particular” and call for the creation of “a new, more ethical culture”. In order to exit the crisis they highlight the need for special measures “in full respect of social justice” that includes the shared responsibility of the governments, as well as of banks and financial institutions, “and may subsequently lead to additional taxation in this sector”. The bishops underline that we should protect ourselves “from a scenario where the market and its inner logic manage to encroach on all areas of life and hold them captive. There are shared and qualitative needs which cannot be satisfied by the market, particularly in relation to the family”.Social policy. The bishops call for “the reallocation of responsibilities between the European Union and Member States”, since issues relating to social, fiscal and budgetary policies – whose primary responsibility in this area resides with the Member States – are also gaining in importance . The bishops have addressed delicate issues in the hope that “economy social protection is put in place so as to ensure that a dignified standard of living can be guaranteed to all citizens”. They delved into the question of mass unemployment; the matter of transferability of supplementary pension entitlement; family and education; of migration, “critical to the future perfomance of European social and economic mechanisms”.Sustainable development. “Our responsibility for Creation obliges us to respect the economic and ethical principle of sustainability. A competitive economy fit for the future draws on the strength of the markets in order to innovate and raise productivity when it comes to resources”. “Our economies need to be shaped more by a sense of development that is in harmony with the cycles and the temporal rhythms of nature, This requires us to change the way we manage food, energy and water”, with “a specific institutional guarantee, not just at European level but also at the global level”. Conclusion. The crisis “has clearly revealed that the major economic challenges and dangers with regard to the general integration of national economies must now be solved at international level” by means of authentic world political authority with due regard for “justice and ecological responsibility” for a global economic order which guarantees free and fair competition and opens up the possibility of development to weaker national economies. “The realisation of a social market economy in Europe is part of this endeavour towards worldwide peace and global justice”.