LESS GOVERNMENT CONTROL, MORE FREEDOM

BY MARIO MAURO*

The chronic progression of more than a year of credit spread, crisis, and increases in unemployment clearly demonstrates that the problem is Europe. The problem is the lack of strong and common governance. The problem is the timidity of the European Union in making decisions. The problem is the de facto and voluntary surrender of the sovereignty of the member countries–not to supranational bodies that are institutionally recognized, but subordination to one country, Germany, which has imposed itself on the others and profits from their weaknesses in terms of financing the debt and in terms of competition. The problem is the lack of solidarity and of redistribution mechanisms; the masochistic distinction between "austere" countries and those that are not; the recurring and instrumental confusion about the concepts of austerity and growth, which are not conflicting, but complementary. The problem is the greatly inadequate role of the European Central Bank, which does not perform–by mandate and unlike the principal central banks of the rest of the world–the function of last-resort lender.The problem, therefore, is going forward–and not deluding ourselves that back-pedaling will allow us to resolve even one of our contradictions.
The European Union has 520 million citizens and, taken as a whole, it is still the strongest economy in the world. When taken individually, however, none of the European nations who are in the G8 today will still be there in 10 years. We are 8% of the world population, and we spend 58% of the welfare allocated in the world. Therefore, none of our problems will be resolved on their own.
The former German Chancellor Helmut Kohl wrote this in Bild [a German tabloid] a few months ago: "My vision for Europe was and remains that of the founding fathers: it is the vision of a united Europe, which means the vision of a progressively closer life in common on our continent." The single market is the greatest European economic achievement. It gives us a competitive advantage, and it permits us to be a global player, together with the United States and China. We don't grow with taxes and government control; we grow if we are free to choose the right way to obtain this growth. But growth will also depend on the degree of solidarity that we will be able to achieve between member countries.
The leaders of the European Union must continue to fight vigorously, or the European project will sink in its contradictions. In order to do this, however, it is necessary for the project to be structurally reinforced.The United States of Europe is the only solution, the logical result of the ambition of the founding fathers. But three inescapable stages precede this goal, logically and proportionally by degree of difficulty. First, the ratification of the Fiscal Compact by the 27 member nations. Second, the passing of a solution that brings into being a single public debt for the European Union, preferably according to the Eurobond project; surprisingly, the European Parliament recently approved a "redemption fund" that insures debts exceeding 60% with regard to the relationship between debt and gross domestic product. Third, the promotion of instruments of expansive politics, attainable through an increase of the communal budget and the separation of the "investments" section from the stability pact.
None of these measures will be adopted if the protagonists of European politics do not show some courage–not the courage of the reckless, but the courage of those who feel that they are responsible for the destiny of a generation.

*Member of the European Parliament