Italy's contribution to the debate on the new European governance

Rome, December 14th, 2017 - Through the European integration process launched over sixty years ago, the Member States of the European Union have achieved lasting peace and impressive economic growth that have enabled Europe to establish the world's largest and most reliable welfare system.
In the most difficult times of the global financial crisis these extraordinary achievements have been dramatically challenged. Europe has experienced unprecedented economic, social, political and institutional uncertainty, compared with which the progress made (with regard to the banking union, flexibility in the stability and growth pact and the European Stability Mechanism) seemed to lag behind schedule and not sufficiently effective.
To overcome the legacy of the crisis once and for all and to rise up to the challenges of the future an additional step change is necessary.
Significant efforts are needed to improve governance and the EU institutions as well as common economic policy tools to sustain employment, growth, convergence and the ability of Member States to adjust to new conditions.
Since 2014 Italy has made several contributions to this debate and has put forward a series of concrete proposals concerning the future of our common European architecture; these were brought together in a far-reaching political agenda submitted in February 2016– a position paper entitled 'A Shared European Strategy for Growth, Jobs and Stability'[1].
Ahead of the forthcoming meetings on this topic (first and foremost the European summit that will take place on 15 December), the Italian Government is releasing an additional statement today reflecting the current debate and its most recent developments – such as the proposal for a reform of the euro area made by the European Commission on 6 December.
Beside financial and monetary integration, the Government believes that a new European governance should especially sustain growth, employment and social inclusion. In order to ensure that prosperity is once again broad-based and all European peoples may benefit from it, all Member States must improve their ability to adjust to shocks, including through greater risk-sharing.
The completion of the European Monetary Union is part and parcel of this process, as the regular functioning of the euro area and the strengthening of the European Union are mutually reinforcing.
The following are the factors needed to strengthen the European Union and complete the eurozone:

  1. improved economic governance to boost growth potential and promote convergence;
  2. a new approach to sharing and managing European public goods;
  3. the completion of the banking union;
  4. the introduction of a common stabilization function for the economic cycle;
  5. a new consistent institutional architecture.

The document also includes a roadmap to support the transition to the 'new order'.

[1] The position paper was then followed by a proposal for a European Unemployment Benefit Scheme.