The discussion between Mario Nava (European Commission) and Moritz Schularick (Kiel Institute for the World Economy) revolves around the evolution of capitalism, particularly in the context of Europe.
In his opening statements, Nava argues that the social market economy in Europe, while not optimal, has been leading the world in many respects – for example with regard to green initiatives.
The success of the European Union, Nava says, rests on three factors: competition, cooperation and solidarity.
“We derive our place in the world from the single market. We derive it from the fact that we are 7% of the population and we command about 22% of the world GDP”, Nava argues. “The single market has been essential in the prosperity of Europe, but it’s been essential also in the solidarity of Europe.”
Still, Moritz Schularick notes, there’s a “widespread feeling that somehow capitalism is not up to the task of delivering a sustainable global economy.”
Is inequality at the heart of this dissatisfaction with the current capitalist system, he asks.
Watch the video to hear why Mario Nava believes redistribution should not only be about taxation and benefits but also about access to the single market; where the role of government must be improved; and why a new, better capitalism should focus on green, digital and social transitions.
