Home » Panetta: the EU changes growth strategy, exports are not sustainable, focus on internal demand. We need a regular flow of migrants

Panetta: the EU changes growth strategy, exports are not sustainable, focus on internal demand. We need a regular flow of migrants

by admin
Panetta: the EU changes growth strategy, exports are not sustainable, focus on internal demand.  We need a regular flow of migrants

ROME. The EU must move from a growth model based on exports and external demand to “strengthening internal demand and the single market”. This is what the governor of the Bank of Italy Fabio Panetta states according to which “trade disputes and global shocks make this growth strategy less sustainable and more risky”. According to the governor, China, one of the “main European outlet markets” is reducing trade openness as well as making its producers increasingly competitive.

The governor then added how “Europe must channel in its favor the collective strength of the countries that compose it2 and quoted the economist (and governor of the Bank of Italy as well as President of the Republic) Luigi Einaudi: “The need to unifying Europe is evident – he wrote – Existing states are dust without substance. None of them can bear the cost of self-defense. Only unity can make them last. The problem is not between independence and union; it is between existing united and disappearing”. For Panetta, therefore, Einaudi’s warning “is tremendously relevant in the times of fragmentation and war that we are experiencing. The answers we give will have to be up to the challenges we face.”

Panetta then invited us to welcome regular immigrants. In the European Union “many member states are facing the challenge of an aging and declining population” and “to avoid a sharp decline in labor supply and therefore potential growth, a significant effort is needed to allow regular and controlled entry of immigrants and their integration into the labor market”. “The issue of migratory flows – he continued – cannot be addressed by Member States individually. A common immigration policy at European level is necessary both to avoid imbalances between Member States in the face of the asymmetric pressure exerted by massive arrivals from Southern countries, and to coordinate regular entries for work reasons”. Furthermore, the governor further explained, a common policy “is essential to attract qualified workers, capable of contributing to innovation in production systems also as entrepreneurs”.

See also  Highlights of important announcements of listed companies: Kweichow Moutai expects net profit of 52 billion yuan in 2021 to increase 11.3% year-on-year

The governor also recalls that the Green Deal industrial plan for the net zero emissions era launched by the European Commission in 2023 is based on four pillars: reduction of bureaucratic burdens, increase in skills, commercial initiatives and subsidies. The “deterioration to the bottom” competition that this Commission program encourages would therefore cause “a limited effectiveness of interventions and a lower gain in competitiveness for the European production system as a whole”. Panetta in his lectio magistralis for the awarding of the honorary degree in Legal Sciences, Banking and Finance by the University of Roma Tre, adds that the ‘recipe’ for strengthening Europe requires “expanding public and private investments in advanced technologies , bringing them to the levels of the most active countries and enhancing cutting-edge European centers in sectors such as artificial intelligence, robotics, digital and communication infrastructures, space exploration and biotechnology”.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy