Discussions at this national roundtable session got underway with the observation that the idea of introducing European public debt securities – or so-called Eurobonds – is not a new one: indeed, it dates back to 1993 when Jacques Delors proposed, albeit in embryonic form, the issuance of European bonds to finance investment in European Community infrastructure.
The Friends of Aspen held their twelfth annual meeting in the newly-restored Salone Barozzi at the Milan Institute for the Blind. At the opening of proceedings, the group’s latest members were introduced, a brief account was given of the group’s activities over the past year, and a range of matters raised by group members were discussed, including the choice of discussion topic for the next annual conference to be held in the spring.
The roundtable participants began their examination of the mobility issues affecting Italy today with the observation that, last year alone, Italian households spent on average more than 35 billion euro on getting from one place to another. Also in 2009, the cost of congestion in metropolitan areas was around 9 billion euro. Just in Rome, for example, fuel consumption totaled between 12-15 million euro in the same year – to which must be added the costs generated by rising pollution in cities and areas beyond city limits, as well as by road traffic accidents.
The Conference got underway with an acknowledgement that savings have played a key role in maintaining Italy’s stability during the more acute phases of the recent financial crisis, and may play an even more important role now as a driver of the country’s economic recovery and growth.
Proceedings at this roundtable discussion got underway with the acknowledgement that, in recent years, consideration of the question of how to measure economic performance and social progress has gone far beyond the concept of Gross Domestic Product. This is true of the efforts of national statistical institutes, major international organizations, as well as the academic and research sphere. Today, there is a vast array of knowledge and statistical data available, enabling a much more comprehensive grasp of economic activities and their actual value.
The last minute lifeline thrown to Greece to keep it from possible default opened a series of urgent questions on the future of the single currency, Europe as a political entity and, more in general, the relationship between finance and the real economy. The crisis concerned not only the precarious economic and social situation of Greece – which will inevitably have to pass through a period of deep-seated and predictably painful restructuring. It also shed light on the series of actions that should be taken to prevent possible contagion with other European countries.
After the crisis, a new paradigm of development is emerging: more solid, anchored to shared values and projected to the construction of a future beyond the ordinary handling of the emergency. Over recent months, there has been discussion on the wave of moderate optimism brought on by commentators and economists, with figures in hand, to pronounce the imminent end of the economic and financial storm that occurred after 2008.
The seminar, divided into three sessions, studied the main institutional economic and social causes holding back adequate growth in the South and its ability to reach the levels of growth seen in the North.
This session focused on the crucial role played by infrastructure in any given country’s economic development. It was observed that an adequate endowment of tangible infrastructure is a necessary prerequisite for competing in the global market, and that boosting infrastructure levels is an undeniable priority both for Italy and for Europe. The question of trans-European infrastructure is especially gaining increasing importance.
The Conference got underway with a general discussion on a fundamental question: in the new world order, is Europe’s importance destined to wane – no matter what? Leaving aside the impact of major international trends (such as demographic changes), which have reduced the relative influence of the EU in objective terms, the participants pointed to various internal factors as constituting constraints on Europe’s potential. First and foremost of these is the difficulty of reconciling the sovereignty of the various Member States with the authority of Brussels.
The debate over the need to broaden the scope of economic indicators – and more particularly, moving beyond measurements of GDP – has inspired a wide range of studies on the topic both in Italy and abroad. This roundtable event examined a recent Aspen Institute Italia-Fondazione Edison study entitled “Italy in the new geo-economy of the G-20”, which aims to contribute further to this discussion. The study reveals an Italy that is better-placed than indicated by traditional rankings and compares favorably with other industrialized economies in numerous fields.
The starting point for the discussions at this event was scientific method, with an emphasis on the complex and often problematic interaction of the “exact” sciences with politics and, more particularly, with the media – an indispensable vehicle for getting through to the general public and hence, indirectly, to leaders. It was stressed that complete adherence by physicists and biologists to professional ethics is essential if knowledge is to be used properly in addressing many social and economic problems.
This seminar examined developments in the concept of progress and in models of capitalism in light of the profound economic and social changes wrought by the financial and economic crisis.
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 response to the crisis, the State has intervened to rescue banks and financial institutions, to restore confidence in the market, and to guarantee loans and transactions. Within the space of a few weeks, the State in many countries has become the largest shareholder in major banks and insurance companies, resuming the role it had abandoned during the protracted era of privatizations.
The participants in this talk-debate noted that by acknowledging the existence of various “Souths” in Italy rather than continuing to speak of “the South”, efforts have been made in recent years to mitigate the persistence of the serious and unresolved question of the South. The underlying hope has been that, by differentiating between the various areas of Italy’s Mezzogiorno, widespread change and gradual renewal might be encouraged to take root.
The National Conference got underway with the observation that one of the negative effects of the international financial crisis has been to halt debate on the problems afflicting the savings market in Italy, and on what measures are needed to overcome them. These problems were already beginning to emerge as early as the late 1990s, but they have become more evident as a result of the crisis.
The participants at this talk and debate session were reminded that the main priority on the economic agenda of Western countries is the immediate promotion of sustainable recovery. The fact that there are 22 million unemployed people in Europe is indicative of the social hardship caused by the recession. Linked to this surplus production capacity is a reduced ability to use leveraging (the very mechanism that induced “euphoria” within the economic system thereby triggering the crisis).
