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Thoughts on t e economic crisis in Europe

II I

Mariarosaria Iorio - Political Analyst

Has democracy still a meaning had to "make a gesture", i.e. to give as well as a stronger role for the Eu-
in Europe? up their money! Finally, I understood ropean Central Bank in the economic
that government debt was money that and financial spheres. Europe has to
Following the collapse of the Soviet had been borrowed from the private work more to achieve integration of its
Union in the late 198os, the dominant banking system! I must admit that financial and economic policy.
liberal political philosophy all over this surprised me -- while inspiring
Europe resulted in the withdrawal of me. "So, for many years governments It is, indeed, disheartening to hear
the State from its role of social cata- had been borrowing on the financial debates about countries thinking of
lyst, while giving the markets a role as markets without either consulting or going back to their national curren-
social developer and economic re-dis- informing their citizens. This explains cies, establishing controls at Euro-
tributor. The State has consequently why markets seem to have the power pean frontiers and revising the Schen-
given up its role of service provider in of deciding which government policy gen Agreements. Such debates make
Europe. The current crisis is also the is more appropriate so that they can me think that Europe has reached the
consequence of the political choices recuperate their funds" - I thought. limit of the extent to which national
that let the financial markets take over democracies can create innovative de-
the real economy. This trend is the Then, I asked myself what is the role bates: instead of looking at the future
logical consequence of what began in of democracy under the current cir- some politicians want to go back to
the 198os. cumstances? My feeling is that in the the past in a demagogic and even dan-
current context democracy is on hold gerous way. The issue is not the dan-
Lack of State and of proactive so- as it is actually the financial mar- ger that the free movement of people
cial policies, the weakening of public kets who are managing Europe in a can create! The danger comes rather
services and individualism have re- sort of co-management scheme in from inadequate balance between Eu-
sulted in an atomized society where partnership with governments. The ropean public policies and markets,
as well as from the lack of innovation
and employment creation policies in
Europe.

National choices or more Euro-
pean integration?

Can countries move toward a better
future alone? The answer is no! Has
any country alone found a solution
to the crisis? The answer is again
no! That is why, finally, the crisis has
brought to the top of the agenda the
issue of European federalism and in-
tegration, and that is at least one po-
sitive effect of the crisis. European
politicians have frequently agreed to
find common solutions to the short-
term and long-term crises. Surely, this
situation is not over. While steps are
being taken towards a long-term solu-
tion, for many years we have seen the
the motto sauve qui peut applies -- evidence suggests that there cannot same narrow nationalistic approach
"everyone for himself'. These national be any national democratic control and the pursuit of national political
political choices have affected Europe over government decisions relating interests impeding European political
as a whole. to economic and financial policies, integration. This concerns particular-
particularly when such decisions are ly taxation and foreign policies.
When the financial crisis started I won- interlinked with global and European
dered why the media mostly focused policy-making. Therefore, a higher le- We are all aware that the issue of na-
on the private sector as the ones who vel of regional integration is needed, tional sovereignty has always been the

16 International