The European Union at its final call
History has suddenly changed pace. After decades of apparent stability, the world has entered a phase of geopolitical acceleration that no longer allows for ambiguity or delays in decision-making. Wars, strategic realignments, the return of power politics, the fragmentation of trade, and the political use of finance mark the definitive demise of the international order on which the European Union had built its architecture. In this new context, Europe appears dramatically inadequate, trapped in a model conceived for an era that no longer exists.
The transformations underway are not transitory episodes, but manifestations of a structural shift in the global balance. The United States, China, Russia, and major emerging economies have long since embarked on the path of economic policies geared toward power projection, in which monetary, fiscal, and industrial instruments operate in a coordinated manner to support their sovereignty and, above all, their interests. The European Union, by contrast, continues to operate as if the neutrality of rules could replace politics, and as if the market, left to its own devices, could guarantee growth, cohesion, and security.
The results are clear for all to see. Over the past twenty-five years, the euro area has been relegated to the rear of global growth. This relative but persistent decline cannot be attributed to structural deficiencies in human capital or technology, but rather to an economic and regulatory framework that has systematically compressed demand, discouraged investment, and penalized public intervention. Stability has been elevated to a fetish, while growth has been treated as a residual variable.
This framework has its roots in the Maastricht Treaty, born of a historical context dominated by fears of inflation and the illusion that monetary integration alone could generate real convergence. But economic history teaches us that no monetary union can survive without adequate economic governance and tools to offset imbalances. Europe, however, has chosen the opposite path: it has institutionalized rigid rules, transforming contingent means into permanent dogmas.
Geopolitics, however, tolerates no inaction. In a world where energy, raw materials, technology, and finance have become strategic weapons, Europe's self-limitation translates into systemic vulnerability. The absence of a true industrial policy, fiscal fragmentation, and an obsession with constraints have progressively eroded the continent's economic sovereignty, making it dependent on decisions made elsewhere.
In this context, redefining the European Central Bank's mandate can no longer be postponed. A central bank that pursues almost exclusively price stability, ignoring growth, employment, and overall financial stability, ends up accentuating internal divergences and weakening the Union as a whole. Money is not an end, but a tool; and when the tool becomes absolute, the system grinds to a halt.
The European Union has thus reached a historic crossroads. Either it acknowledges the obsolescence of its regulatory and economic framework and initiates a profound and rapid reform, or it accepts the risk of irreversible marginalization. This is the final call: not to save an abstract idea of Europe, but to restore the continent's ability to govern its own destiny in a world that does not wait for those who remain static.
Antonio Maria Rinaldi
Questions and Answers
Why is Europe growing slower than the US and China? The European slowdown is not due to a lack of capacity or technology, but to a flawed regulatory framework. While other powers use monetary and fiscal policy to support growth and sovereignty, the EU has focused almost exclusively on adhering to strict budget rules and controlling inflation. This approach has stifled domestic demand and discouraged the public investment needed to compete globally.
What does the Maastricht Treaty have to do with the current crisis? The Maastricht Treaty was conceived in a different historical era, dominated by fears of inflation, and institutionalized rigid rules that are now obsolete. It created a monetary union without a true economic governance and without tools to compensate for imbalances between member states. This transformed technical means into immutable dogmas, preventing Europe from responding flexibly to new geopolitical and economic challenges.
What solution does Rinaldi propose to avoid decline? The main solution is a radical reform of the mandate of the European Central Bank (ECB). The ECB should not limit itself to pursuing price stability, but should also include economic growth, employment, and overall financial stability among its objectives, similar to the U.S. Federal Reserve. Furthermore, a truly common industrial policy is needed that overcomes fiscal fragmentation and allows Europe to act as a sovereign power.
The article The European Union at the last call comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lunione-europea-allultima-chiamata/ on Sat, 10 Jan 2026 15:13:01 +0000.