Europe's future: ideas and perspectives of two former Italian prime ministers

Translated by Valeria D’Alessandro

In the last week, a few pieces of news have deeply fueled the public debate at a European level, and both are linked to efforts made by two former Italian prime ministers: Mario Draghi and Enrico Letta[1].

Last week, a report written by the former-president of the Italian left-party “Partito Democratico” on the single market was published. At the same time, the former governor of the Central Bank presented a report on competitiveness that will be published in June during a meeting at the High-level Conference on the European Pillar of Social Rights. These two documents sparked several discussions about the European system and its criticalities. Nothing new, but they surely represent an important push to move from words to action, articulating strategies for the future.

Regarding the report presented by Enrico Letta during the recent European Council, the title itself indicates its primary focus: Much More Than a Market.

The report clearly aims to revitalize the Single European Market, which has historically provided growth, wealth, and economic prosperity to the continent. However, it is currently facing a crisis, undermining its fundamental principles and functionality. To initiate this revitalization, the report addresses several key themes, from the Capital Markets Union to the complex issue of defense, outlining a strategic vision for the future. These themes could serve as valuable tools for European policymakers in addressing future challenges.

In the same vein, Mario Draghi's presentation of the guidelines for the report, which will be published in the next few months, has sparked a lively debate on one of the most pressing issues following the Covid crisis: competitiveness.

While the theme is not new, given the recent global developments and the policies adopted by the USA and China, Europe cannot afford to maintain such significant internal asymmetries. These asymmetries could undermine the EU's stability and growth. It would be more advantageous for Europe to negotiate common policies that would ensure greater economic cohesion and competitiveness.

Based on these perspectives, the report will focus on 10 strategic macro-sectors of the European economy, with three key elements that will be pivotal to the entire initiative. Firstly, the ability to provide public goods, which guarantees leverage in key sectors, with an implicit reference to the Capital Market Union. Secondly, the ability to ensure a greater competitive advantage for European companies, ensuring increased scalability and consequently more advantageous market shares[2].

Lastly, the ability to increase the supply of critical raw materials, reinforcing value chains and focusing on the expansion of strategies such as the Critical Raw Materials Act[3].

There is a lot of food for thought on the table, much of which will be further discussed in the coming months. Despite this, the directions are already quite clear, and it will be up to the new Parliaments and the new Commission to gather these ideas and implement effective policies for the future.

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