“Co-investments are urgently needed in Europe, and a real political process must be launched” – Corriere.it

The eurozone is like a bee: according to economists, it cannot fly. However, for almost 25 years, it has gone through one crisis after another. The next flight must be its destination, warns Mario Draghi Review of the founding treaties European Union making it possible to create a truly common tax policy. Remembers the former prime minister, in his speech on Tuesday in Cambridge in honor of Martin Feldstein, economist (Eurosceptic) and former head of the National Bureau of Economic Research. “The challenges of climate change and migration make it all the more urgent to strengthen Europe’s resilience to action.”

state aid risks

There are no other alternatives. Loosening rules on government aid could lead to fragmentation because “governments with more fiscal space can spend much more than other governments”. Moreover, individual initiatives will be doomed to fail in the face of the complexity of the problems that must be faced. â € ˜ Further The euro cannot be stable if a large part of the monetary union failsClimate change cannot be solved if one country reduces its carbon dioxide emissions faster than another. Thus, the only option is to focus investment authority on common priorities at the federal level: Environment, defense and health . Thus, increasing the European debt issues needed to finance these expenditures, while at the same time launching a path to reduce countries’ debt through tightening fiscal rules and through growth. It would be a more radical reform of the new European Stability Agreement that, while giving more flexibility in calculations, does not think of “rethinking the seat of financial power”, to move it from the periphery to the center of the European Union. . How is it implemented?

Treaty reform

“One possibility is to move forward – as has been done so far – with technocratic integration, apparently making technical changes, in the hope that political changes will follow,” explains the former head of the European Central Bank. This approach has worked for the euro, making the EU stronger, but the cost has been high and progress slow. The other option, which Draghi prefers, is The start of a real political process, with a final goal clear from the outset and approved by the electorate in the form of an amendment to the EU agreements ». The review should take into account “the growing number of common goals and the need to fund them together, which in turn requires different ways of representing and making decisions at the central level,” while avoiding individual governments or minority fronts in countries having veto power over Strategic options for the European Union.

the previous

Draghi has not forgotten the unfortunate outcome of a draft constitution for Europe, which was rejected in 2005 by popular referendums in France and the Netherlands and has been suspended ever since. to”I am convinced that European UnionRopei has been more than willing for over 20 years to take this route, because today they have only three options: paralysis, exit, or integration ». The first citizens fear because of the growing external threats to the European Union, led by Russia. The second reduces the unreasonable Brexit precedent. “Because stalemate and exit look so unattractive, the relative costs of further integration are now lower,” Draghi concludes. “At this historic moment, we cannot stand still or, like Jean Monnet’s bicycle, we will fall.”