n.4 May 2005

In the United States, government policies for redistributing wealth are much more limited than in Europe. Yet, the two continents share cultural and religious roots and represent wealthy societies. What causes these differences then? In the opinion of the economist Alberto Alesina, Dean at Harvard University, essentially, there are two answers…

It is obvious to all that the Union now needs a new start, a decisive and bold step forward. The majority of Europeans is already in favour of transferring jurisdiction over foreign policy and defence matters to Brussels. Why not begin here? The decisions are up to the governments but the economic and cultural spheres can play an important role by stimulating and proposing.

It is not by chance that flat tax should come from countries which for decades have been used to the hypocrisy of authoritarian and corrupt governments, who hide their own interests behind the slogan of collective welfare. Instead of worrying about flat tax, older members of the European Union should remove the real obstacles hindering competition in the products, labour and financial markets. Mainly because if we tried to protect our businesses from the transparent and loyal competition from the NMC, it is likely that foreign investments will be directed outside the EU.

In a global economy marked by an impressive speeding-up of the change rate, the ECB teams up with the Union to achieve monetary stability and the conditions for a growth both sustainable and capable of creating employment. The results already obtained are remarkable and they will improve even more in the near future. Provided that…