Francesca Tortorella
The diagnosis of a demographically ill Europe is entirely accurate: the active workforce is shrinking, while economic dependency — young people, retirees and inactive populations — is increasing. National social systems are therefore becoming more fragile, raising questions about their long-term sustainability. However, it is precisely on this issue that federalist ideas could provide a solution.
First of all, a genuine European federal system would make it possible to pool demographic risks. Today, although the European Union as a whole is clearly a “very old” continent, population ageing and productivity decline do not occur at the same pace in all Member States. A coordinated European fiscal and social policy could help compensate for these differences, just as a federal state redistributes resources among its regions.
Furthermore, the integration of social systems would allow investment in birth rates, education, innovation and immigration — essential levers for maintaining the productive base.
With the aim of making the European social model sustainable and fair for all EU citizens, a federal Europe could also establish a common foundation of social rights financed by its own resources (a carbon tax, taxation of multinational companies, recovery of funds lost through tax evasion, the fight against undeclared work, etc.). Indeed, the European level is the one that corresponds to today’s real economy. Value chains, companies and capital now move freely across borders, while social and tax policies remain fragmented. This asymmetry creates both social dumping and a loss of efficiency.
From the perspective of economic sustainability, a federal Europe would also strengthen its capacity to invest in productivity, healthcare and ecological transitions, which are the true remedies for demographic stagnation: if each worker produces more and better, the imbalance between active and inactive populations becomes manageable — as does the ecological burden. We cannot imagine returning to a model based on “producing lots and lots of cars”! A sustainable model is needed.
Once again, European coordination increases the chances of success. Federalism does not deny economic constraints; rather, it proposes addressing them collectively, through organised solidarity at the continental level, instead of leaving each country to face alone a challenge that is, by its very nature, common.
The “social” dimension is, in my view, closely linked to the federalist challenge, because there can be no greater unity without greater solidarity — unless we accept the emergence of a European minority (those who “participate in Europe”) becoming increasingly distant from the vast majority of citizens who feel ever further removed from the very idea of Europe. There is a need for European passion and enthusiasm in order to convince people; this is why federalism requires a realistic social dimension and concrete responses to preserve a social model that is unique in the world.
First published: UEF Newsletter
