“This is not the time to undermine the pillars of our system, from the pillars of the pension system to those of the tax system. This is not the time for cicadas, but for investing in the future”. The message launched by Paolo Gentiloni, prime minister in office awaiting the elections, speaking at the inauguration of the Luiss academic year, is clear.
“Our accounts are not in order, but very in order – he added – the deficit was at 3% and in the year that has just ended it will be at 2%. These results, which have cost families and workers sacrifices, must not be squandered, it would be irresponsible. Woe to forget the goal of moving to the gradual and sustainable reduction of the public debt in the next legislature, it is rarely mentioned in the public debate, but it must be one of the fundamental objectives”.
Gentiloni's words come 24 hours after the appeal of 14 French and German economists from the Diw institute for economic research in Berlin and the Munich Ifo institute, who proposed that Europe increase risk sharing and at the same time the discipline on public finances. And just as the reform of the Euro and of EU institutional relations is being prepared in Europe, the political debate in Italy ignores important topics that will mark our near future. Especially since the victory of Emmanuel Macron and the Merkel-SPD agreement that clears the German government through customs have relaunched Europe after a phase of stalemate.
Gentiloni is aware of this all the more as Commissioner Moscovici reiterated: "Italy's great challenge is to reduce its debt, 3% deficit/GDP is not a desirable goal if we want to boost economic growth". And the proposal-appeal of the 14 Franco-German economists is a further sign. The proposal seeks to synthesize the different approaches for the reform of the euro area which will be discussed again by the Eurogroup at next Monday's meeting in Brussels and which it also the government agreement signed in Germany last week between CDU/CSU and SPD.
Ifo manager Clemens Fuest explained when presenting the proposal in Berlin that "France and Germany play a key role in the reform process in Europe and must define a common concept, act and convince their partners: this work can only have effects if in both countries make compromises and each moves towards the other”. This means that "France should accept more market discipline and Germany must be ready for greater risk sharing".
Among the 14 economists are Agnes Benassy-Quere' Marcel Fratzscher, Clemens Fuest, Jean Pisani-Ferry, Helene Rey, Isabel Schnabel. No one speaks on behalf of his government but among the names listed, more than one holds current and recent posts with the governments of Paris and Berlin. One of the signatories, Philippe Martin, was named president of the French government's economic analysis council on Wednesday. And whoever wants to understand, he means him.
