Mon. Apr 22nd, 2019

Hernández de Cos praised the European Union as one of the "most successful projects of recent centuries"

Hernández de Cos praised the European Union as one of the "most successful projects of recent centuries"

The Governor of the Bank of Spain, Pablo Hernández de Cos, has put in value the process of integration of the European Union, to qualify it as "one of the most successful projects of recent centuries", whose objective considers that it has been fulfilled by avoiding that "disasters" occurred in the first half of the twentieth century.

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This was expressed by Hernández de Cos during his speech in the dialogue "The Union is strength, Europe in the face of the challenges of the 21st century", organized by the Rafael del Pino Foundation, where the former Minister of Foreign Affairs, Ana de Palacio, also participated. the principal investigator of the Elcano Royal Institute Federico Steinberg.

For Hernández de Cos, in addition to the political success of European integration, it has also had an economic success, since there has been a "combination of social and competition rights" together with an economic right "that does not exist elsewhere. "

In this sense, he believes that "there is no argument" to think that some of the challenges facing the economy at the moment are better addressed individually from each Member State than from a set of countries within the Union European

Despite this optimism, the governor of the Bank of Spain has acknowledged that there are still things to be done and that, in the face of the "negationism" of the past, the European Union is now willing to continue making changes to the project, since, otherwise , would have "negative consequences" in the face of another recession.


Among the reforms carried out has highlighted the creation of the European Stability Mechanism (ESM), the Stability and Growth Pact or the supervision and regulation procedures, although it has lacked a common fiscal budget, strong capital markets and a banking system "fully integrated".

Comparing the European situation with the US, Hernández de Cos explained that aid between the different federal states of the country is capable of distributing costs up to 40% if one of the territories suffers a negative disturbance, something that in Europe is reduced to 10%.

In the first place, the fiscal element, which only distributes 10% in Europe, "does not play any role", because there is no same budget for the Union. Secondly, the high level of banking penetration in Europe and the so-called "national bias" mean that the capital market is "very disintegrated". As for the banking system, it has admitted that the correction capacity in the EU "is greater" than with the other elements.

To correct these shortcomings of the Union and improve the resistance of all member countries to possible negative disturbances, Hernández de Cos proposes a political union as an "anchor of the future" - something that would imply a greater transfer of sovereignty - to increase the weight and the integration of capital markets and establish a European deposit guarantee system for banks.

The latter argues that if European banks are supervised from Frankfurt by the European Central Bank (ECB) and resolved from Brussels, it should not be only national depositors who are affected if the entity is in trouble, so advocates a community deposit guarantee.


Regarding the departure of the United Kingdom from the European Union, in addition to describing it as "drama" and "bad news", Hernández de Cos has defended that the British country has played "an absolutely fundamental role" in theses on reforms " what to do ", such as letting the markets" play their part ".

Regarding the position of Spain in the European project, the governor has criticized that the country has been more focused "on our issues", seeing how the French, the Germans, "and even the Italians" have contributed roles, while the Spain's participation has been more "limited".


The principal researcher of the Elcano Royal Institute Federico Steinberg has explained, about the book presented in the act, that it is a book "pro-European but critical" about a Union in which there are two "important" fractures, the North-South, between creditor and debtor countries, and the one that has opened the constant conflicts such as immigration.

Among the solutions, Steinberg has detailed that it is "necessary" to reconnect citizens with the integration program of the European Union, so that it will be useful again for Europeans.

However, the former Minister of Foreign Affairs during the second stage of José María Aznar, Ana de Palacio, has assured that the Union's goal has to go "beyond" to be useful and return to endowing citizens with prosperity, a goal that it would have "sunk" after the last economic crisis, causing a lack of confidence in the group of European citizens.


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