Free Trieste Movement

FLIGHT CAPITAL AND THE FREE TERRITORY OF TRIESTE AS ECONOMIC FREE ZONE OF EUROPE

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The head office of Banca d’Italia in Trieste: the Free Territory of Trieste has full economic sovereignty and it did never become part of E.U. economic agreement. It is an economic free zone in the heart of Europe.

In the current financial-economic crisis that invests also the European Union, there are clear indicators of further development, concerning the expectations of the markets for the next months. One of the economic indicators is that of the movement of capital within the European Union.

The indicator that we are talking about is Target 2, the system il sistema che settles payments within the Euro zone, which is used to measure the scale of capital flows between the Countries that use the single currency. Well, last year the Target 2 did mercilessly picture the trust of savers and investors in the economies of the E.U. Countries.

The less trusted is Spain, with its EUR 241.8 billions deficit, followed by Italy with a deficit amounting to EUR 229.6 billions, Greece and its EUR 97.3 billions, then France (EUR 73.5 billions). But what does it mean being in the red in this “special” ranking of economic soundness? Simple: international investors and savers “distrust” the weak States, which are those that cannot grant reliability of the financial markets due to the fact that their social-economic structure is compromised.

This happens normally in Countries with the highest rates of corruption and infiltrations of criminals in the institutions, for example Italy. And it is exactly this system of corruption that permeates ever since the whole Italian society to be unable to bear with international competition and single European market. Because the costs of corruption keep weakening the Italian economy that can no longer resist in the global market.

In this situation one cannot but remind that in the single market, those who benefit of the collapse of the weak Countries are the States offering a good degree of resistance and with a strong and incorruptible institutional system. And this is how the flight capital of the “weak” countries flow to Germany, which in the Target 2 ranking are a positive record of EUR 592.5 billions, in Luxembourg (+140,4 billions), in the Netherlands (+49,4 billions), or in Finland (+31,8 billions).

In this ranking it looks clear that the little Grand Duchy of Luxembourg is considered a secure safe  for the capital of investors within the European Union. To make it shot, its political stability, efficient infrastructures, the closeness to the big European Countries, the presence of qualified and multilingual workers, along with the long tradition of bank secrecy, played a key role in the growth of the financial sector. For instance, with its 550,000 inhabitants and without access to the sea, Luxembourg is one of the richest Countries in the world, and the first in Europe (per capita income: USD 97,000).

Interesting data, real food for the thought. Which confirms the strategic importance of a State with full monetary sovereignty like the Free Territory of Trieste: a small State in Europe with a big international Free Port. A financial and maritime free zone in the very heart of Europe: this is the Free Territory of Trieste.

Translated from blog “Ambiente e Legalità” – “Environment and Legality” by Roberto Giurastante

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