Changes in Eurozone Governance after the Crisis and the Issue of Growth

The Eurozone countries are still seeking a way out of the crisis that has been affecting the European Monetary Union (EMU) since 2010. Sovereign debt crises, difficulties in the banking system and large current account imbalances have characterized the euro crisis, while several countries of the Eurozone have entered a phase of slow and even negative growth. All this has put at risk the sustainability of the EMU, leading to a climate of distrust surrounding the future of the single currency. The crisis of the Eurozone has shown that a sustainable currency union requires more governance because of the higher degree of economic, financial and fiscal spillovers between euro member countries. However, the crisis has led to significant changes in the institutional framework of the EMU and in the economic policies of the Eurozone, highlighting, above all, the role of the ECB. The present contribution analyses these changes in Eurozone governance and discusses whether they are the correct solutions to the crisis; in addition it focuses on the unresolved issue of growth in the peripheral Eurozone countries.

Public debt and growth in Italy:Analysis and policy proposals

The Italian economy is characterized by a considerable amount of public debt and low growth for over a decade. This is a key issue both at a theoretical and policy level. The relationship between public debt and economic growth is widely discussed in the economic literature, since in many countries spending is rising faster than income, leading to widening budget deficits and higher levels of debt. However, the empirical literature generally highlighted the heterogeneity of the debt-growth nexus. This paper summarizes four working papers written by the author in the period from 2007 to 2014, where the structural problems of the Italian economy are identified, and the critical aspects related to Italy high debt and its low growth is emphasized. The contribution aims at discussing possible policy actions to address the Italian structural problems in the current situation. In particular, the paper underlines the importance of a long-term strategy for growth, to boost productivity and the potential growth of the Italian economy. In addition, it focuses on fiscal policy emphasizing the strategic role both of spending optimization and of tax collections through, for instance, digitizing the tax collection process in order to contribute to the long-term sustainability of sovereign Italian debt

L’Europa, l’economia politica e la sua storia

This paper, inspired from the entry into force of the European Monetary Union, is a reflection on the issue of Europe, political economy and its history. Are recalled a few highlights of economic history and the history of political economy, which coincide with periods of major transformation of the economies of the Western countries and, in particular, Europe. The analysis of the history of economics and the political economists with particular regard to innovation and technological change has allowed us to trace an evolutionary path of the European economy from an agricultural system that turns into an industrial society first and then becomes post-industrial. Finally, from the analysis of the path that led to the definition of the economic and institutional the single currency, What emerges is a positive assessment. But this is subject to some important conditionality regarding the capacity of the future monetary union to meet the real needs of both economic and social rights of citizens of the countries that participate in this challenging project

Governance and institutions for stability and growth in the Eurozone

The present paper aims to contribute to the debate on what kind of governance and institutions are needed to ensure stability and growth in the Eurozone. In fact, despite the economic recovery, the Eurozone does not yet have effective institutions to ensure stability in the face of a new economic crisis, without forgetting legitimacy, transparency, and ability to meet the expectations of greater prosperity for euro area citizens. This paper intends to support the view of a deep rethinking of EMU with a different governance and different institutions. The new governance should imply a renewed political agreement among the member states not only of the Eurozone, but also of the whole European Union. This political agreement must lead to a reconsideration of the Maastricht parameters, to a different approach of the European institutions and, lastly, to the change of the EU Treaty. The paper will also discuss the role of institutions that must balance the European interests and those of member states with the aim to provide a consistent approach to stability and growth

L’Europa, l’economia politica e la sua storia

This paper, inspired from the entry into force of the European Monetary Union, is a reflection on the issue of Europe, political economy and its history. Are recalled a few highlights of economic history and the history of political economy, which coincide with periods of major transformation of the economies of the Western countries and, in particular, Europe. The analysis of the history of economics and the political economists with particular regard to innovation and technological change has allowed us to trace an evolutionary path of the European economy from an agricultural system that turns into an industrial society first and then becomes post-industrial. Finally, from the analysis of the path that led to the definition of the economic and institutional the single currency, What emerges is a positive assessment. But this is subject to some important conditionality regarding the capacity of the future monetary union to meet the real needs of both economic and social rights of citizens of the countries that participate in this challenging project