In his latest book entitled "The interregnum – A third way for Europe” (Milan, Hoepli, 2020. pages 244, Euro 19,90), Gustavo Piga, a long-time economist with solid international experience and Professor of Political Economy at the Tor Vergata University of Rome, proposes an evocative journey through time with particular attention to the last two centuries (the current one and the previous one) to a reconstruction of economic history with original considerations and assessments, supported by a robust reference to economic fundamentals.
The stated goal of the author is to trace an alternative route, both for Italy and for Europe in a phase marked by the marked opposition between supporters of sovereignty and globalisation.
The comparisons between economic phenomena, which occurred in the period considered, appear conditioned by the belief that "history never repeats itself in the same way" and by the specificity of the current situation in which Europe has found itself, "with a brand new currency and Central Bank, but also with political institutions entangled in the midst of an epochal handover between national and European executives” (the term interregnum used in the title also refers to this).
Not being able to mention all the stimulating food for thought offered, made even more pleasant by a light and engaging style, due to space constraints, we recall here the in-depth analysis of the similarities and differences of the current crisis with that of 2008 and with the other from the 30s.
Crucial in the system of the book, divided into 5 chapters, including a prologue, dedicated to economic effects of Covid 19 and an epilogue, centered on young people and their motivations, is the part in which we focus on what is defined European madness. In other words, the solutions that have been adopted by the European Union and by the Parliaments of the European nations to face the economic crisis of 2008, in particular, the Fiscal Compact and its nefarious aspects. Solutions which have, unfortunately, favored the divisive spirit between nations with the development of sovereignist movements opposed to the globalists, an opposition which risks seriously jeopardizing the specific weight of Europe in the international arena, forcing it to helplessly assist "the logically winning strategies and scores of China, Russia, the United States and perhaps others as well”.
In the belief, therefore, that we are far from a union of united states in the old continent, the author evokes the example of the Prime Minister of the Treasury of the United States of America, Alexander Hamilton, who in 1790 strongly advocated and imposed his idea after long discussions issue single government bonds for all confederate states, the Continentals, marking a new era, characterized by the renunciation of taxing power by individual states, but accompanied by the benefit of a previously unknown solidarity between rich states and needy states.
Unfortunately, however, within the European Union it continues to be far from the goal of a common fiscal policy, as well as the configuration of models of solidarity between nations - certainly not a historical novelty, just think of what Montesquieu has already argued! -, indispensable steps for a European Constitution, inspired by a principle of true social justice.
Furthermore, in the book there are relevant spaces for the treatment of burningly topical issues, such as the MES critically analyzed in its original configuration and in the one modified by the forthcoming reform, even if the considerations on its relative inconvenience for Italy remain intact); or how the correct and effective use also in our country of resources provided by the Recovery Fund. Crucial junctions for arriving at a European fiscal constitution, based on the autonomy of each Member State and on its responsibility in terms of public spending.
From Europe to Italy to ask what our country can do for the European Union and what it must do internally to change the slow pace, if compared to that of other nations. A useful occasion for the author to critically examine the economic policy of Italy in the last twenty years and its growth difficulties, in the absence of a serious revitalization of infrastructures, supported in turn by an adequate youth employment plan.
At the conclusion of this journey through history prompted by the current transition period for Europe and for Italy, Gustavo Piga clearly indicates the critical issues to be addressed for both. In particular, for Italy the lack of investments is evident due to the endemic pessimism linked to the aforementioned European austerity and the lack of a reform of the public administration, inspired by a real qualitative increase in skills and knowledge. Two problematic aspects, which must be interpreted as two fundamental challenges for the future of our young people and, therefore, for the possibilities of effective socio-economic growth of the country.
