Italy’s Pier Carlo Padoan calls for ‘political union’ to save euro

A United States of Europe with Germany’s Fourth Reich at the helm is coming.

Countries such as Italy and France will just toe the line and join. Unlike Greece and Cyprus who were forced to join the club, the corrupt Italian and French leaderships are either too scared to go against the grain after Athens has just had an example made of it, or they’re in on the scheme.

 

Italy’s finance minister has called for deeper eurozone integration in the aftermath of the Greek crisis, saying a move “straight towards political union” is the only way to ensure the survival of the common currency.

Pier Carlo Padoan’s comments reflect how the tortured and dramatic negotiations that led to this month’s deal on a third bailout of Greece have triggered a round of soul-searching about the future of monetary union across European capitals.

“The exit and therefore the end of irreversibility is now an option on the table. Let’s not fool ourselves,” he said in an interview in his central Rome office. “If we want to take that risk away, then we have to have a different euro — a stronger euro.”

Italy and France have traditionally been among the most forceful backers of deeper European integration but other countries are sceptical about supporting a greater degree of political convergence.

“Some believe that the way it works is more or less fine with minor adjustments. I think this is not enough,” Mr Padoan said.

Italy is calling for a wide set of measures — including the swift completion of banking union, the establishment of a common eurozone budget and the launch of a common unemployment insurance scheme — to reinforce the common currency. He said an elected eurozone parliament alongside the existing European Parliament and a European finance minister should also be considered.

“To have a full-fledged economic and monetary union, you need a fiscal union and you need a fiscal policy,” Mr Padoan said. “And this fiscal policy must respond to a parliament, and this parliament must be elected. Otherwise there is no accountability.”

Full article: Italy’s Pier Carlo Padoan calls for ‘political union’ to save euro (Financial Times)

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