April 13, 2017 – Il Sole 24 Ore published an editorial by SEP Senior Fellow Carlo Bastasin, in which he comments on the discussions currently taking place between the German Minister of Finance Wolfgang Schäuble and Brussels. The big question is whether or not Europe will one day have an integrated political system capable of handling its economic governance. The answer will define the area’s future. Schäuble’s opening gambit is to refuse. Instead of giving the Commission more power, he would rather assign the European Stability Mechanism primary responsibility over state rescues. However, while the ESM has or will have the necessary financial resources, it is not political in nature. While a “government” could preemptively intervene to avert a crisis and make discretionary calls, the ESM operates under stricter guidelines, and most of its interventions are designed to encourage budgetary discipline through the imposition of sanctions.
- The original article (in Italian) is available from Il Sole 24 Ore.