According to Monti, there is no crisis of the euro, because the symptoms of a weak currency, inflation and exchange rate, are not there. Instead Europe is going through a public debt and banking crisis, which can be tackled through rigorous structural reforms.
The crisis in Greece has triggered an attack on nepotism and corruption which are poisoning the stability of the country, said Monti.
"Even if Greece will not do all that Germany asks, they are putting in place the restructuring of their own rules, which is what Germany asked," he said, underlining the positive aspects of crisis.
A similar success, according to Monti, was also obtained with the ECB's intervention in Italy last August.
"We must ask ourselves what has been done before and after the EU pushed us to adopt rules to contain debt. The crisis has demonstrated the effectiveness of the EU," he said.
Italy must continue its efforts to curb debt, but needs to pursue those structural reforms without which the country will not be able to relaunch its economy, and growth, Monti added.
“Greece is a small country but for a country like Italy a debt crisis of this sort would not be sustainable,” Monti insisted, underscoring Italy’s weakness.
“Without growth Italy remains vulnerable,” he said, urging the government to take the right steps to avoid any further slipping.
Italy could sink the Union
Monti is convinced that Greece will not be the country to pull down the euro zone, but Italy and Spain may because they are big economies. In an editorial in the Italian daily Corriere della Sera on Sunday, he slammed the Italian government for having blamed others, instead of recognising its full responsibility.
If Berlusconi does not get its act together, he will struggle to shelter Italy from the strong attack of financial markets. Spain has taken responsibility and has started diligently to reform its public sector while Italy has not so far, writes Monti in the Corriere.
“With the growing interdependence of Europe and the world, it is appropriate that those who gave the support to Berlusconi’s government become aware of the international reality that risks to transform Italy from founding member to the state which will sink the Union,” he writes, stressing that those who saved Berlusconi and gave him the vote of confidence last week in Parliament should urge him to take responsibility and act to avoid a disaster.
Not solidarity, but enlightened self-interest
Speaking in favour of Eurobonds, Monti conceded they were a better solution than asking the European Central Bank to buy Italian or Greek debt.
But it is not up to Italians and Greeks to endorse the establishment of Eurobonds, he said as we have to consider the German interests. “We should use less the term solidarity, more enlightened self-interest,” he added, stressing it is not in German interest to push the ECB to beg member states to increase its capital so that it can shelter debt-ridden countries from the markets’ attack
Dangerous to change the Treaties now
During the EurActiv Italy launch event, Monti also offered his opinion on reopening the institutional debate and pave the way for better EU governance.
Governments should implement growth-driven measures, he said, but not embark in a change of the EU Treaty, invoked by some member states, notably Germany.
“Thinking to change the European treaties right now is very dangerous. We have to wait in my opinion,” he said.
Changing the treaties, he said “would give markets the signal that upcoming decisions on governance at the EU summit of 23 October are not enough. Instead, it should suffice for now.”
