The key premise of proceedings at this talk-debate was that achieving a stronger and profoundly reformed European Union is an ambitious but not unattainable goal, and that Italy and the United Kingdom could play a leading role in this regard. Indeed, the negotiations currently underway with the United Kingdom were seen as affording a great opportunity for reforming and strengthening the EU.
The draft deal presented by European Council President Donald Tusk was deemed a first positive step, with grounds for optimism that an agreement can be expected to be reached at the next European Council meeting on February 18, and that a prospect which most fear while others relish could be headed off, namely: a referendum defeat for David Cameron and a possible Brexit. It was stressed, however, that the differences which undoubtedly exist will need to be managed by keeping the integration process open.
There was a consensus that Europe must become more competitive, and for that to occur structural reforms are needed, such as the completion of the internal market, the establishment of a capital markets union, the creation of a digital single market, and the reduction of bureaucracy and rules, particularly for SMEs. Among those elements urged as essential were greater trade openness, and, in particular, the bringing of talks on the Transatlantic Trade and Investment Partnership (TTIP) to a rapid close.
The participants highlighted the need for the European economic system to increasingly serve as a frontier of innovation, technology, and knowledge, characterized as three key criteria for ensuring growth. Within this schedule of forward-looking structural reforms, it was suggested that Italy would play its part by asking for nothing new other than the enforcement of fiscal rigor according to the rules. It was felt that Italian banks, in turn, can only benefit from the new system of rules, as the banking union and the capital markets union should bolster each other.
Governing the delicate relations between those in Europe that are and are not part of the euro area was also seen as strategic. While Britain will certainly not be opposed to greater integration of the eurozone, it does not wish to be obliged to join, and, with a view to protecting the pound, is proposing a right of veto over unwelcome eurozone decisions. It was further noted that the draft deal also provides the possibility for a coalition of national parliaments to block legislative proposals of the European Commission.
Lastly, the management of the increasing inflow of migrants was held up as another key issue. The British government is pushing for the right to suspend the entitlement of European citizens to claim welfare benefits in Britain, aimed not at undermining the freedom of movement of people but at safeguarding against an overwhelming burden on British welfare. It does however promise to deliver on commitment towards and rights for refugees, acknowledging among other things that Italy was the first to make a major contribution towards accepting and managing migrant arrivals. Italy, for its part, remains committed to contributing financially to the European decision to allocate 3 billion euro to help Turkey tackle the migrant influx.
