A fair government should present to Europe several reform proposals concerning the Eurozone, which should be widely discussed and shared, by the vast majority of experts, academics and economists at the European and international level. The aim of the reforms is to provide more stability to a monetary union in a bad shape that does not have the necessary prerequisites to work appropriately.
We believe that there are only two options available to get out of this crisis. Either creating some stabilising mechanisms between countries with the aim of containing the macroeconomic imbalances of the single currency, for example by sharing possible risks among all the member states, or the other option is the collapse of the monetary union. There is no prospect of prosperity and development within the Euro area without making the necessary reforms aimed to modify the institutional set-up of monetary union. These reforms have been invoked by experts and economists for a long time but have been continuously opposed by the wealthiest and most powerful states.
• We call for the creation of economic mechanisms of solidarity and compensation that can provide for net fiscal contributions from wealthy countries (which have unfairly accumulated enormous surpluses) to those countries affected by years of austerity and unemployment. Such transfers of resources should be used to finance productive investment and support policies aimed to a rise of the employment. It is indispensable to contain macroeconomic imbalances within the Eurozone, to reduce the divergence between countries and to ease the asymmetric impact of the single currency on the weaker economies.
• We call for the setting in place of the necessary tools that will facilitate the risk-sharing between the member states. These tools can take the form of a true public debt sharing, or in giving the ability to the ECB to buy government bonds directly from individual countries in difficulty to avoid the unsustainability of public debts or excessive financing costs, or the creation of a guarantee single European bank deposit scheme, or a common unemployment insurance.
•We are strongly opposing the financial mechanisms based on the blackmail and bullying of the strongest countries towards the weakest countries. These financials aid that should support those countries crushed by the unsustainability of the euro are becoming instead rigid and unbearable macroeconomic conditionalities based on conflicts of interest with the private capital.
It is necessary to define a sustainable and effective governance's framework that can facilitate the economic and social development throughout the EU that will provide a real support to the EU citizens. The Member States should have wide autonomy of manoeuvre for what concerns the most important choices about economic policies. Especially, for those policies aimed to answer different national needs based on citizens' interests. In working towards this goal, we do not deny the importance of coordination at European level; rather we aim for a model of sound and respectful cooperation between sovereign states that present deep national diversities. Of course, the cooperation will fully respect the subsidiarity principle on which the concept of European integration is based on.
Coordination should focus on the real problems that cannot be tackled efficiently and adequately at a national level because of their transnational dimensions, such as the fight against the tax evasion and avoidance practised by multinationals, the fight against international financial crime and harmful financial speculations. Decisions touching people pensions, welfare system, the organisation of public services and the labour market must be brought under the control of national politics and protected from the neo-liberal logic of the Brussels technocrats.
• It is imperative to implement a rigorous spending review on public accounts through thoughtful cuts that affect waste in public spending. The aim is to free up resources for public investment, without producing any depressive effects on the economy. Besides, it is essential to achieve all the useful structural reforms aimed at improving the efficiency of the public administration, the quality of public services, the transparency and fairness of the tax system. In the face of the efforts made to reduce public money squandering and to improve public institutions' efficiency, we ask for a renegotiation of the current budgetary rules and of the European economic governance system. We need an open and honest debate, at a European level, on the future of the monetary union and its real implications for the various Eurozone economies.
• We want a clear separation of the productive public investments from the deficit's calculation. Public investments are an essential tool for the support of the economic recovery, internal demand, job creation and social equity of a country. Further, public investments are acting on the denominator of debt/GDP ratio and deficit/GDP ratio, therefore haveing the effect of improving the quality of Public finances in the long term.
• We must abandon austerity and neoliberal economic policies based on private market interests. These policies are harmful and unsustainable from an economic and social point of view. Governments should have full control over their economic policies. A decision-making process based on national and regional knowledge of specific issues will have more possibilities to revive national economies.
• We want to tackle down both tax avoidance and tax evasion, which are practices usually carried on by large multinational corporations. We will support all measures of transparency and regulation made to overlook on harmful practices. Our aim is to create a fairer tax system for the benefit of all, against the interests of few.
By adopting adequate and stringent financial regulations, we should be able to prevent future crises in the banking sector. In the event of a crisis, Member states must be able to manage directly eventual crisis in order to minimise the damage to the banking system according to their own specific needs, with the aim of protecting the interest of the community. Temporary nationalisation, subject to strict restructuring conditions, has often proved to be a cost-effective solution to the state budgets, unlike the bail-in that destroys economic values by damaging small investors and depositors. Italy should have the right to handle the problem of non-performing loans without having to comply with the dictates of European supervision. In fact, the EU imposes to banks, already in distress, unsustainable capital increases on top of a request to sell off rapidly bad debts to speculative funds, creating enormous risks for the depositors and investors facing a possible bail-in. It is necessary to allow banks to absorb the bad debts through a reasonable amount of time and by the support of the state. At the same time, we should establish a committee of inquiry investigating the possible responsibilities and the causes of a financial crisis. In this way, the community would benefit from the economic recovery rather than a few speculative private funds anxious to buy bad credits at a sale price.
• We want to create a modern Glass-Steagall Act based on the separation of commercial banks focused on traditional credit activities from the large investment banks carrying out speculative financial activities.
• Protecting the commercial banks requires the creation of a solid bank deposits and savings system based on an unlimited guarantee from the central bank, who is acting as the lender of last resort for the banking sector.
• We want to revise radically and dismantle the wicked mechanism of the bail-in with the aim of excluding its application to retail customers and depositors of a Bank. People savings must no longer be treated.
• Banking supervision should focus on the systemic risks associated with speculative financial activities. Nowadays, the latter represents the biggest threat to the financial sector. Moreover, we should improve the process of lending credit to avoid the creation of a credit patronage.
• We call for a strict regulation on speculative finance and capital flows, which includes stringent limits on the use of complex financial instruments and risky operations involving financial derivatives. We call for a trading barrier that limits frequent financial exchanges and for the maximum transparency required to countering money laundering and reducing the numbers of financial crimes. We want strong rules against financial speculation combined with a separation of commercial and investment banks. These necessary reforms can protect us from new crises and bring the financial sector to the service of our real economy and of our society.
It is a priority to negotiate constructively and reconsider the conditions for Italy's participation in the Economic and Monetary Union. On our part, we need to make all the necessary actions needed to improve the quality of our national institutions and budgets. Lastly, we need to foster a European cooperation aimed to fight relentlessly the practices of tax avoidance, elusion and all the financial crimes.