Il Fiscal Compact

The European Union has shown that the way to exit the crisis is by working together. The Fiscal Compact is proof. This is what Enzo Moavero, Italian Minister for European Affairs, claimed while presenting “The Fiscal Compact”, the paper edited by Gianni Bonvicini and Flavio Brugnoli and produced through collaboration between the Istituto Affari Internazionali and the Centro Studi sul Federalismo.

The presentation took place on December 18 at the Office of the European Commission in Italy, in Rome. Lucio Battistotti, director of the office, acted as moderator. In addition to the Minister, other participants included Andrea Bollino, professor of economics at the University of Perugia, Sandro Gozi, member of parliament for the Democratic Party, Alberto Majocchi, professor of finance at the University of Pavia, Gian Luigi Tosato, professor emeritus of law of the European Union at the University of Rome ‘La Sapienza’.

The crisis has brought out some of the negative aspects of European economies and societies, stated Moavero. But it has also been beneficial in that it has demonstrated the Union’s ability to react: suffice it to think of the decisions taken at the numerous summits this year, among which those regarding the Fiscal Compact, the Growth Pact and the banking union.

A deep linkage between the political and economic choices of the various states was also stressed. The so-called Fiscal Compact (or Treaty on the stability, coordination and governance of Economic and Monetary Union) is evidence, a synthesis of all of this. It has contributed to strengthening confidence in the capacity of the European countries to overcome the crisis.

Responding to the those who feel the Fiscal Compact reflects a German view of European integration, Moavero observed that this is true in part, but that it should not be forgotten that views of integration are so many and diverse that they cannot be narrowed down to a single country.

The Minister feels that, after much hesitation, the Union is finally more conscious of its role, and has a vision of Europe that is more rational and less emotional. It is no coincidence, in fact, that the Fiscal Compact was followed up by agreements to create a banking union – a situation that was unimaginable only a few years ago, after the signing of the Lisbon Treaty.

Moavero concluded by noting that in the 13 months of the Monti government, Italy has taken on a stronger role in Europe and regained its position as an important co-actor in keeping with “Italy in Europe, for Italy and for Europe”.

Il Fiscal Compact, Quaderni IAI n.5