Jean-Claude Trichet shares the line held by Mario Draghi, promotes Italy's efforts and proposes to Europe "directly executive measures" for countries that do not respect the rules and do not apply the recommendations. The former number one of Eurotower talks about it in Bologna, where he is awarded an honorary degree in statistical sciences. He armored the historic center of the city, to keep at bay about fifty "antagonists" opposed to the choice of the university.
Europe, Trichet argues, has an important task ahead: the economic union after the monetary one, as the acronym EMU (Economic and Monetary Union) implies. To strengthen its governance in this area, however, it must make bold choices, overcome the (often useless) sanctions and move on to de facto action, with the imprimatur of the European Parliament.
"We must - he says - introduce elements for an economic and fiscal federation that are completely democratic". Therefore, instead of imposing “sanctions on countries that transgress the rules and fail to apply the recommendations, I would suggest activating a new decision-making process. In these exceptional circumstances, the European authorities, the Commission, the Council and the Parliament should directly decide on immediately enforceable measures for the country involved. In the context of the budget and some aspects of economic policies, it would be a question of giving life to a concept of 'activating a federation of the Euro area by exceptions'”.
Sharing a single currency, adds Trichet, means accepting limitations on fiscal sovereignty, a not new concept for the continent, given that, in exceptional cases, the Maastricht treaty also spoke of it. The fines have proved ineffective so we need to make a leap in quality, with all the trappings of democracy. “For this reason, the European Parliament should be called upon to assume a fundamental role in the decision, in addition to the role traditionally played by the Commission and the Council. More precisely, Parliament should approve the measures proposed by the commission and approved by the Council with a majority vote”. At the same time "the dialogue between the European Parliament and the national parliament of the country concerned should be organized in the best possible way", each should explain their reasons and after an in-depth discussion "the final decision would be up to the European Parliament".
In his "Reflections on the future of economic governance in the Eurozone", Trichet also brings back the proposal for a European finance ministry responsible, among other things, for managing crisis management instruments (ESM) and managing of the banking union. A piece of a picture that should be completed with a Commission that is a prelude to the European government (with an elective designation of the president, as proposed by Wolfang Schaule), a Council that is the forerunner of the future Upper House and Parliament, already the Upper House elected by all European citizens.
Regarding the central bank, Trichet argues that it is "an anchor of confidence for the eurozone" and what has been done "by Mario Draghi and the other colleagues on the governing council is very important and in continuity with what has been done since the beginning of the crisis ”. However, the ECB "cannot and does not want to replace the states" which must continue on the path of reforms at the national level. It's Italy? “He has taken measures that go in the right direction, but it is not an easy road: it is important that they are implemented quickly and effectively”. It is a country "rich in a very important asset for success: the entrepreneurial spirit".
However, the challenge is difficult for everyone: “In 2016, in terms of purchasing power parity, the Eurozone will be below China's GDP and above India's. But in the broader horizon, the entire GDP of the G7 countries will be annihilated by the rapid development of the emerging economies”. In this new global constellation "European integration is essential to achieve prosperity and authority". After the setbacks of recent years, "in 2003 and 2004 France, Italy and Germany gave rise to a sensational attempt to weaken the stability pact", today, in the midst of the crisis, we must have the courage to make choices. “Jean Monnet said the famous phrase: 'people accept change only when they find themselves in conditions of need and recognize the need only when the crisis overwhelms them'. I firmly believe that this is the time to move forward."
