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The EU and the crisis: light at the end of the tunnel

    • Rome
    • 8 April 2009

          This talk-debate session focused on early signs of a global economic recovery. Whilst the light at the end of the tunnel may not yet be clearly visible, some important signals are already starting to emerge. The first of these is that the governments of EU countries have acted in a timely and effectively coordinated manner. Indeed, their actions have confirmed the primacy of the political sphere and an intergovernmental approach over action through EU institutions (and the European Commission in particular). In the current situation, this has certainly contributed to painting a new and positive image of a more human and less dogmatic Europe, capable of engaging with the lives of its constituent peoples.

          The participants noted, however, that while the intergovernmental method has had the merit of promptly dealing with the situation, it cannot be truly said that we have embarked on an exit strategy until the social effects of the crisis have been mitigated.

          The debate addressed the question of how to restore and strengthen people’s faith in the system. First and foremost, the participants emphasized the necessity of adopting a new set of legal standards to ensure that the distortions of the financial system can never be repeated. Secondly, it was felt that an investment plan needs to be approved at the European level that provides a real stimulus for the various economies. These investments could be guaranteed via Euro Bonds, the feasibility of which will depend solely on the will of the governments concerned.

          Turning to consider the position of Italy, which will almost certainly play an important role within the upcoming G8 summit, the participants observed that the country has definitely felt the effects of the crisis – albeit to a lesser extent than in other European countries given that it benefits from a low level of private indebtedness (in contrast with its high public debt). Nevertheless, Italy’s main challenge lies in the growing gap between the North and South of the country, with the former possessing wealth and infrastructure on par with levels in northern Europe, whilst the problems of the South remain unresolved. The participants concluded that it is on this dual reality that the future of Italy within Europe hinges.

          • Pier Luigi Bersani, Gianfranco Fini and Giulio Tremonti
          • Mario Monti and Alberto Quadrio Curzio
          • The EU and the crisis: light at the end of the tunnel, Rome, April 8, 2009
          • Giulio Tremonti and Enrico Letta
          Strillo: The EU and the crisis: light at the end of the tunnel