MARIO MONTI: GLOBALISATION NEEDS TO BE MANAGED WITHOUT ANTITRUST EUROPE IS IN THE HANDS OF THE MOST POWERFUL

THE FORMER EUROPEAN COMMISSIONER AT THE TEATRO SOCIALE

“Europe is emerging in relation to the USA thanks to a single currency and rules on competition”

Europe as typical example of how the market – common and regulated by antitrust rules – has enriched democracy: this is what Mario Monti, former European Commissioner and President of the Bocconi University in Milan, interviewed by the Deputy Editor of the Corriere della Sera newspaper, Dario Di Vico, spoke about this evening at the Teatro Sociale in Trento “I began my career as a university lecturer in Trento, in 1969” – Monti began – “and I must say that it was an experience that toughened me up .” According to Monti, Europe is not only integrating but also transforming itself for the better and this is true first of all in relation to politics. “I do not believe that construction of a united Europe has taken away space from politics” – he added – “if anything it has obliged politics to change. I believe the crisis of the First Republic was due less to ‘Mani Pulite’ (the corruption investigation) than to the advent of the European Union. It was Maastricht that forced politicians to let go of their hold on economics, thanks to the end of state aid and the introduction of rules on competition. When there were no rules on public deficits one could say yes to everyone, dumping the consequences on future generations. Afterwards this was no longer possible, politics had to begin to make choices.” Today, now that many objectives have been achieved, “the challenge is to act out of conviction rather than compulsion, although an emergency remains in Italy: it is the loss of competitiveness. However, there is no moment of truth, when the emergency becomes dramatically visible. Hence the importance of good leadership and a strong majority. On the other hand Europe makes everyone respect the rules, whether they are large or small. I managed the phase marked by the end of government guarantees for the Landesbanken by the central German government: it was not easy, there was a bipartisan agreement to reject the idea, but in the end European policy imposed itself. Then I remember the time that Berlusconi telephoned me to tell that there would be no state aid for Fiat. This was of considerable assistance in helping the company to restructure.” As regards globalisation, Monti is clear: “I agree that greater management of globalisation is necessary so that it does not come to an end and is accepted by the people. Until a few years ago many thought that one could leave management of globalisation to a series – what is more a decreasing number – of large multinational companies and to a single superpower. It is mistaken to think that Italian politicians fell blindly into line behind the position of Bush. The most strenuous opposition to multilateral management of globalisation came from the USA. Some followed suit, also due to anti-European snobbery. However changes are now starting to happen and it is necessary to take advantage of this. However” – Monti clarified – “I do not believe in greater interference of politics in business either. Politics must act in fields within its jurisdiction, for example in the fight against the many corporations which beset us. Otherwise, without a clear and effective antitrust policy, Europe would fall into the hands of the most powerful, as I have repeated several times to European socialists and communists, when talking about the need for rules in order to guarantee the effective functioning of the markets.” Remaining in Europe, one problem nevertheless remains: “Europe is the only place in the world where a supranational authority can make its wishes prevail over the desires of national governments. Thus Europe must also take rules a little similar to its own outside its frontiers. At all events, today it is emerging as compared to the USA, thanks to the single currency and the rules on competition. Moreover, the seeds of these choices were planted in Europe by the Americans after the Second World War, through Germany: the Americans created a central bank there and laid the foundations for the ECSC, the coal and steel community. Nevertheless, as regards the relationship between Europe and democracy, I never tire of saying that Europe can take a step forwards, but that already today it is not “empty” of democracy: the European Parliament is elected with universal suffrage and has increasingly greater powers.” Finally Monti declared that he is favour of nuclear energy in Italy, “after we have resolved the problem of waste disposal in Naples”, a policy of tax redistribution and a clearly defined role for employers’ and workers’ representative organisations, “whose representativeness should perhaps be a little more carefully verified”.