There is a broad consensus on the key issues that will determine the sustainability and efficiency of the eurozone (and the European Union as a whole). These include common mechanisms in Europe, domestic political consensus in the face of the considerable sacrifices imposed on citizens, the functioning of national institutions to introduce necessary reforms; and mutual trust between the member countries.
Organized in collaboration with the Italian Business & Investment Initiative, this international workshop highlighted a renewed openness towards investing in Italy precisely because it possesses – albeit frequently not well-known – assets of interest to investors. It was stressed, however, that implementing (not merely announcing or adopting) reforms, and providing certainty, consistency and a business-friendly environment, remain the real challenges to overcome, as there is fierce competition between nations to attract foreign investment.
At this latest edition of the Aspen Transatlantic Dialogue, the participants pointed to recent developments in the United States – with the at-least partial “shutdown” of federal government operations – as highlighting the multiple dysfunction of political systems on both sides of the Atlantic. It was noted that, in the midst of an economic recovery that is uncertain, in some respects fragile, and unquestionably asymmetric (both as between different sectors and between different countries), the efficiency of government decision-making becomes crucial.
The main challenge identified as facing European leaders was that of striking a delicate balance between maintaining domestic political consensus (in the face of strong social tensions) and implementing necessary but painful reforms that almost without exception will only yield positive results in the medium to long term. While the worst of the financial crisis seems to have been overcome, many concerns remain regarding the overall state of Europe’s economies and the EU’s continued viability from a political and institutional standpoint.
Throughout its history, capitalism has shown an outstanding ability to evolve and adapt to changing political and technological environments.
The Middle East is an increasingly diverse region where very old problems coexist with genuine opportunities for renewal and socio-economic progress. A powerful driver of change has become the Gulf, thanks to very large financial resources and a willingness to invest in the neighboring countries – as well as beyond, with a special emphasis on East Asia.
Discussions at this year’s Annual Conference for the Friends of Aspen centered on the long-term economic priority of sustainable development for future generations, viewed as an important strategic objective at the macro level for individual national economies, and at the micro level for companies and other market players. It was noted that various competing economic models aimed at achieving this goal are emerging, including the sharing economy, the civil economy, and the positive economy.
Antitrust regulations take a truly dynamic approach to the issue in question. They adapt to the continual evolution of the markets, and objectives evolve with time. Globalization and the international crisis are both factors that have a significant effect on competition. The original inspiration behind America’s 1890 Sherman Act has more-or-less been forgotten but its objective, in fact, was to protect small businesses from “the giants”.
Proceedings at this national roundtable got underway with participants observing that Italy periodically looks to privatization as a means to restoring the fragile fortunes of its public finances. Yet while the increasingly straitened condition of these finances is what gives rise, from time to time, to the need to engage in such sell-offs, privatization cannot and should not merely entail a quick grab for cash. Indeed, the roundtable saw a number of different aspects of privatization discussed.
Kick-starting discussions at this national conference was the observation that with a turnover of 132 billion euro and a workforce of 385,000 people, the food industry confirmed its position in 2013 as a leading sector of the Italian economy, holding up well against cyclical pressures despite the difficulties.
A year on from Aspen Italia’s 2013 National Conference on the banking system, participants gathered for this third edition of the event to take stock of the role and responsibilities of banks in the current economic situation.
Kick-starting this national roundtable event was the observation that the question of the competitiveness of Italian firms in global markets can be summed up in the indisputable if somewhat simplified proposition that while exports alone are not enough to get by on, they are nevertheless vital for survival. It was noted that the longstanding issue of the internationalization of Italian SMEs has been a subject of public debate for decades, in parallel with the escalation of globalization and the technological revolution.
Launching discussions at this World Economy Conference was an acknowledgement by those in attendance that the recovery from the economic crisis of recent years has been particularly slow in historical terms, with the most recent figures confirming fears of a further possible slowdown. This global scenario was seen as a fortiori necessitating that growth be considered a top priority for Europe during Italy’s current 6-month-long presidency of the Council of the EU.
The three issues explored at the recent Aspen International Conference event – the “World Economy Dialogue” held in Rome on June 30, 2014 – were the subject of discussion at this first joint meeting of the Friends of Aspen and Aspen Junior Fellows. The resources to be called upon for the global recovery, the energy challenge facing Europe, and sub-Saharan Africa as a frontier for global growth hence provided the guiding framework for a debate informed by the specific profile of those in attendance, namely, entrepreneurs and young people.
Participants at this Aspen Italia National Interest event recognized from the outset of their discussions the crucial role that start-ups could – given the right conditions – play in increasing Italy’s economic competitiveness. The formation of new businesses in highly innovative sectors was acknowledged as not only helping to renew the economic fabric of the country, by opening up new market niches, but also as offering opportunities to younger workers, a group heavily penalized by the current crisis.
At this event to launch the latest edition of Aspenia, the focus of debate was the fact that diverging trends in the world’s major economies have been made more patent than ever before by the financial crisis that erupted in 2008, and which, particularly in Europe, has since transformed into a sovereign debt crisis. Chief among these divergences are the almost opposite trajectories of emerging markets compared to those of traditionally advanced economies, the divide between Europe and the United States, and glaring disparities within the European Union.
Discussions at this National Conference hinged on the central observation that the Italian economy can only be revived by capitalizing on the country’s flagship production sectors, with the food and agricultural industry singled out as being of prime importance. Indeed, it was noted that the sector has continued to be a standard-bearer for “Made in Italy” excellence even amid the economic downturn.
Attendees at this National Conference examining the Italian banking sector noted that, according to economic theory, the financial system has a fundamental role to play in intermediating savings, allowing an efficient allocation of capital with consequent gains in productivity and wellbeing for the entire economy. In the recent past, however, this primary function has been compounded by others that have contributed to a distortion of the financial sector’s role and its relationship with the real economy.
Discussions at this two-day seminar centered on the role of local, national and European-level public actors in stimulating economic recovery.
Discussions at this national roundtable session got underway with the opening premise that the economic crisis and its social consequences have profoundly called into question the prevailing economic paradigm – a model based on competitive individualism, maximizing the profit of the individual, and an “invisible hand” regulating the market. The result is that the idea of the common interest merely being the sum of individual interests no longer seems sustainable in the current economic and social climate.
