European Solidarity as a Way to Face Globalization and as an Antidote Against Populism

Abstract

Two opposite positions are facing each other in the euro area. The first one, originating in southern Europe, is based on the observation that the adoption of the euro favored northern economies, allowing them to have persistently high trade surpluses at the expenses of the southern ones. The second position, originating in northern Europe, focuses instead on the risks that the citizens of those countries would incur to cover the high debt of southern countries. Such opposed positions, however, ignore the deep reasons that led European countries to start the process of economic integration, of which monetary integration is a relevant part. In view of what precedes, a market-financed euro area-wide investment plan to be agreed, monitored and even administered by representatives of northern governments, should be acceptable to them and would support the southern ones in their endeavor of risk reduction.