Tommaso Padoa Schioppa, One Of The Founding Fathers Of The Euro Dies Of Heart Attack

I … EuroIntelligence:  It Is Hard To Escape The Symbolism Of His Death. Tommaso Padoa Schioppa, who died of a heart attack at a dinner in Rome on Saturday night, was one of the intellectual founding fathers of the euro, Italy’s man at the Maastricht Treaty negotiations, and later as executive board member of the ECB, and Italian finance minister. As Quentin Peel remembers in his obituary, it was him who pointed out the inconsistency of free trade in a single market, free capital movement, independent domestic monetary policies and fixed exchange rates, was unsustainable. We recall a meeting with him, not too long ago, in which he advocated a single European bond on the grounds that it would create the world’s largest treasury market, and would increase the EU’s geostrategic role. La Repubblica remembers in its obituary, a quote from him that he felt European outside Europe, and Italian inside Europe.

II .. Lorenzo Totaro, Brian Swint and Flavia Krause-Jackson of Bloomberg Euro Architect, Founding Member Of ECB Board, Dies At 70 
A Man of Vision
Padoa-Schioppa’s devotion to Europe and the euro was clear even in his jokes. Opening a dinner speech in Frankfurt in October 2004, he said his topic was the “emu,” an abbreviation for Economic and Monetary Union as well as the name of an ostrich-like Australian bird. “Neither,” he said, “can go backwards.”
“As a man of vision and strong European convictions, Tommaso Padoa-Schioppa was a powerful voice on the European monetary scene even before the creation of the euro,” ECB President Jean-Claude Trichet  said in an e-mailed statement today. “He contributed decisively in the early years of the euro to the reputation of the ECB as a major actor in international and European cooperation.

‘‘Responsible for the ECB’s tasks in the area of financial stability, Tommaso Padoa-Schioppa aimed consistently at enhancing the architecture for financial stability and supervision in Europe by providing a clear vision for the medium- to long-term objectives and by making concrete contributions to strengthening cooperation and coordination among the competent national authorities,’’ Trichet said.

Father of the Single Currency
In 1988, Padoa-Schioppa served as joint secretary to the Delors Committee, called after the then-president of the European Commission which was formed to investigate how European Union countries could remove all common trade barriers by introducing a single currency. The committee came up with a three-stage plan that was later included in the 1992 Maastricht Treaty that instituted the single currency.

Concerned that countries might retreat from their commitments to the single currency, Padoa-Schioppa developed a timetable for currency conversion that made it harder for member countries to back out of the project.
On the flight to Maastricht, he persuaded Giulio Andreotti, then Italian prime minister, to push for the euro’s initiation in 1999 if a majority of members didn’t agree on a date to start by 1997, according to Matt Marshall in his 1999 book on the euro’s creation called The Bank

Held for a currency without a state
The euro was introduced on Jan. 1, 1999, and was coined “a currency without a state” by Padoa-Schioppa.
“I do not think that a single currency is an event for the last days of the history of mankind that simply crowns perfection,” he said in his testimony before the European Parliament in May 1998. “It is something that has to be in reality while reality evolves.”

Padoa-Schioppa was picked to serve as Italian finance minister at a time when the country’s economy had stalled for two out of five years and the debt burden had ballooned to the largest in the EU. He focused on cutting government spending, often taking low-cost airlines to international meetings.

His efforts to cut spending ensured Italy’s budget deficit fell below the EU limit in 2007 for the first time since 2002. Before him, the annual deficit had widened to 4.3 percent of gross domestic procut in 2005, a 10-year high at the time.

A IMF Committee Head
The Brussels-based European Commission estimated on Nov. 29 that Italy’s budget deficit will be 4.3 percent of GDP next year, worse than the government’s 3.9 percent forecast.

In 2007, Padoa-Schioppa was named chairman of the International Monetary Fund’s policy advisory committee, a position he maintained even after Prodi’s government collapsed. He was replaced in May 2008 by Egyptian Finance Ministe Youssef Boutros-Ghali.

Promontory Europe, the European unit of the financial- services consulting firm Promontory Financial Group, named Padoa-Schioppa as its chairman in June 2009. Four days ago, Fiat Industrial SpA appointed him to the board of the unit being spun off from the carmaker next month.

The Italian national helped Italy, regarded for years as the weakest euro member by investors, curb its deficit. Those skills will aid Greece, which only avoided default after the EU and the IMF forged a bailout worth 110 billion euros ($141 billion).
Padoa-Schioppa’s pro-bono assignment added Greece to a curriculum spanning 37 years of public service, beginning at the Bank of Italy in Rome in 1968 and including stints running the bank’s money-market and economic-research divisions before becoming deputy director general for 13 years from 1984.

“I am independent, I don’t have conflicts of interest and I won’t get paid for what I do,” he said about his new position.

III … Eva Peña Tommaso writes: We Will Not Forget You: Finance Minister and co-founder of the ECB and tireless advocate of the federalist cause

IV. EconomicPolicy Journal reports:  He was one for expanded government structures, he was also president of Notre Europe, a Paris-based policy institute that advocates for European integration … he left behind the Euro.

V. Tommaso Padoa-Schioppa was son-in-law of Altiero Spinelli. The Spinelli Group: With Tommaso we have lost a good friend and a ‘brother in arms’. Tommaso Padoa-Schioppa was a great European. He was one of the fathers of the Euro and the initiator of so many pro-European initiatives. His sudden death is a loss for Europe because he was still so much in the European frontline, as President of Notre Europe, member of the Steering Committee of the Spinelli Group and so much more. The fact that he was the son-in-law of Altiero Spinelli gave him also a lot of pleasure in his fight for more European integration. We want to send our condolences to the family and the friends of Tommaso and wish them much strength … The Spinelli Manifesto: Nationalism is an ideology of the past. Our goal is a federal and post-national Europe, a Europe of the citizens.

VI. Wikipedia: Tommaso Padoa-Schioppa was a leader in the The European Federalist Movement which came out of the ashes of World War II: (Movimento Federalista Europeo, MFE) was founded in Milan in 1943 by a group of activists led by Altiero Spinelli. The principles which inspired its foundation are contained in the Ventotene Manifesto, drawn up in 1941 by Spinelli himself, in collaboration with Ernesto Rossi, Eugenio Colorni and Ursula Hirschmann. Federalism represented in the 1940s a revolutionary and entirely innovative political idea.

VII.  Frank Dimora wrote in The Last Chronicles Of Planet Earth: Since the early beginnings of the European Union in 1957, Italy has played a major role. In 1957, six European nations met in Sicily. They all signed a treaty named the “Treaty of Rome.” The goal of the newly signed treaty was to remove trade barriers, establish a single trade policy, and coordinate transportation, agriculture, and ease the movement of capital and labor  across borders. This treaty was the birth of the revived Roman Empire that Daniel saw in the king’s dream. On January 1, 1958 the EEC was officially formed. On December 1991 the Masticate Treaty was signed by the members of the EU, (twelve at the time). Its purpose was to form a super-state with no borders and a common monetary system. The Council of the European Union would then have a (rotating president) from each member nation for a period of six months. For example, Italy’s President would become the EU President for 6 months, when his term was up France’s President would take over for 6 months and so on.

VIII Keywords: father of the euro, fatheroftheuro


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