The Italian presidency of the EU council takes place in very specific and critical economic circumstances. We are recovering from a long crisis which has repeatedly affected the global economy. We are recovering at a slower rate than other economic areas because we had to deal with the sovereign debt crisis. The recovery was achieved through a path of fiscal consolidation, because the high level of debt made it necessary, even if painful. We had to catch up with the integration essential for making the monetary union safe and efficient, starting from the huge effort to reduce the financial market's fragmentation which contained the provision of credit. Banking union is now progressing, while the increase in many countries' primary surplus shows how fiscal discipline has become more important.
Nevertheless, millions of Europeans are still unemployed, especially youths who suffer because they cannot realise their dreams, youths whose talents and energies are at risk. This stage of individual suffering and collective waste is the main concern of the Italian presidency. The answer to this is at the top of our economic agenda. The answer is growth, sustained in intensity and sustainable in time. We have to ensure such characteristics in order to create new employment opportunities and reduce unemployment.
"Growth is the necessary process for decreasing public debt"
Growth is the necessary process for decreasing public debt. A sustained real growth, assisted by a monetary policy that abides by the objectives set out by the European central bank, enabling effective fiscal policies and assuring sustainability of debt. The European Union's normative framework offers the opportunity to facilitate budgetary discipline with the need to sustain growth. Following this perspective, we are determined to follow a strategy for growth built on three pillars.
The first deals with structural reforms. Although each of the member states have specific needs, interdependence means that each member state can implement reforms which also generate benefits for other members. To maximise the benefits of structural reforms, we need to work on a joint plan with the other member states in a shared framework at European level.
This way the structural reforms will improve the economy's potential so that the measures taken to stimulate growth will work most effectively. Efficient public administrations and an effective competitive market are some of the objectives that need to be set. Many reforms are easy and inexpensive but we need to act promptly in order not to fall behind.
"We still have many opportunities to increase integration of our internal market in order to take advantage of any potential benefits"
The second stage for activating stimulus for growth regards the markets: evidence suggests that economies grow at a higher rate during phases of greater integration between them. We need to seize the opportunity to increase our integration with the United States of America offered by the transatlantic trade and investment partnership. We still have many opportunities to increase integration of our internal market in order to take advantage of any potential benefits. We can break down the barriers regarding services, foster a common digital economy and create European networks starting from a continental energy network.
Finally, we need to stimulate private investments which have dramatically decreased during the crisis. Public investments could also act as a stimulus for the economy but are much more effective when they are used as an incentive for private investments. Policymakers can intervene, favouring the application of risk capital and alternative funding to finance companies' long-term investments. They can also identify trans-European infrastructures to plan and jointly finance with more member states.
These three fields of policy are motivated by a broad vision from the history of the European Union, with its potential and limits, but also from the lessons learned during the crisis. These three actions mutually support and strengthen each other and are part of a consistent package. We offer a vision to the new European parliament legislature in order to inspire a long-term programme - a programme going beyond the second semester of 2014, but which the Italian presidency will try to put on 'solid ground' where growth leading to greater wellbeing for Europeans citizens can be achieved.