Tommaso Padoa-Schioppa
Encyclopedia
Tommaso Padoa-Schioppa (tomˈmaːzo ˈpaːdoa ˈskjoppa), Knight Grand Cross (Cavaliere di Gran Croce)
(23 July 1940 – 18 December 2010) was a well-known pro-European Italian
banker and economist who was Italy's Minister of Economy and Finance from May 2006 until May 2008. He is commonly considered as a founding father of the European single currency
.
, in north-eastern Italy. Both his parents were intellectuals. His father, Fabio, whom he did not meet until after the war in 1945, was a teacher and later became a senior executive at the insurance company Assicurazioni Generali.
He graduated from Bocconi University
(Milan
) in 1966 and received a Master's degree from the Massachusetts Institute of Technology
in 1970. After a first job in Germany with the retailer C&A Brenninkmeijer, he joined the Bank of Italy
in 1968, eventually becoming Vice-Director General from 1984 to 1997. In 1980 he became a member of the influential Washington-based financial advisory body, the Group of Thirty
and remained one till his death. From 1993-97, he was president of the Basel Committee on Banking Supervision
. In 1997–98 he was head of Consob, Italy's stock market supervision agency. He was a member of the European Central Bank
's six-member executive board from its foundation in 1998 until the end of May 2005. In October 2005 he became president of Paris-based think tank Notre Europe
.
On 17 May 2006 he was appointed as Economy and Finance Minister in the government of Romano Prodi
, serving in that post until May 2008, when a new government headed by Silvio Berlusconi
took office following the April 2008 general election
. From October 2007 to April 2008 he was Chairman of the IMFC (International Monetary and Financial Committee), the top policy steering committee of the International Monetary Fund
(IMF).
; they have three children. After their divorce, he became the companion of Barbara Spinelli, a journalist, daughter of Altiero Spinelli
and Ursula Hirschmann
.
Newspapers received numerous letters from readers personally taking offence and pointing out that he understood little about the situation of a considerable part of the 20-30 years old Italian population, who live on approximately 1,000€ per month and cannot afford to leave their parents’ house . According to some lexicographers, "bamboccioni" was the most popular new Italian word of 2007. He was the first to describe the euro as "a currency without a State" (in a book published in 2004), a term that was later popularized by Otmar Issing
.
These four goals, each apparently desirable on its own, he called "the inconsistent quartet" (see also the similar Impossible trinity
concept).
At that time, European Union countries maintained some restrictions on trade and (especially) on capital movements. These were gradually eliminated through the Single Market programme and the liberalization of capital movements, so that by the late 1980's one of the two remaining objectives had to go to for consistency to be maintained. He proposed that the third objective (independent monetary policies) be abandoned, by creating a single currency and a single European central bank, so that the other three objectives could be attained. The Delors Report of April 1989 endorsed this view and recommended a European Monetary Union (EMU) with a single currency. He worked on designing and setting up the new European Central Bank
and became one of the first executive board members (June 1998-May 2005).
Omri
Omri was a king of Israel, successful military campaigner and first in the line of Omride kings that included Ahab, Ahaziah and Joram.He was "commander of the army" of king Elah when Zimri murdered Elah and made himself king. Instead, the troops at Gibbethon chose Omri as king, and he led them to...
(23 July 1940 – 18 December 2010) was a well-known pro-European Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
banker and economist who was Italy's Minister of Economy and Finance from May 2006 until May 2008. He is commonly considered as a founding father of the European single currency
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
.
Biography
Born in the mountain town of BellunoBelluno
Belluno , is a town and province in the Veneto region of northern Italy. Located about 100 kilometres north of Venice, Belluno is the capital of the province of Belluno and the most important city in the Eastern Dolomiti's region. With its roughly 37,000 inhabitants, it the largest populated area...
, in north-eastern Italy. Both his parents were intellectuals. His father, Fabio, whom he did not meet until after the war in 1945, was a teacher and later became a senior executive at the insurance company Assicurazioni Generali.
He graduated from Bocconi University
Bocconi University
Bocconi University is a private university located in central Milan, beside Parco Ravizza. Bocconi provides undergraduate, graduate and post-graduate education, in addition to a range of double degree programs, in the fields of economics, management, finance and law. According to many university...
(Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...
) in 1966 and received a Master's degree from the Massachusetts Institute of Technology
Massachusetts Institute of Technology
The Massachusetts Institute of Technology is a private research university located in Cambridge, Massachusetts. MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological education and research.Founded in 1861 in...
in 1970. After a first job in Germany with the retailer C&A Brenninkmeijer, he joined the Bank of Italy
Banca d'Italia
Banca d'Italia is the central bank of Italy and part of the European System of Central Banks. It is located in Palazzo Koch, Roma, via Nazionale...
in 1968, eventually becoming Vice-Director General from 1984 to 1997. In 1980 he became a member of the influential Washington-based financial advisory body, the Group of Thirty
Group of Thirty
The Group of Thirty, often abbreviated to G30, is an international body of leading financiers and academics which aims to deepen understanding of economic and financial issues and to examine consequences of decisions made in the public and private sectors related to these issues...
and remained one till his death. From 1993-97, he was president of the Basel Committee on Banking Supervision
Basel Committee on Banking Supervision
The Basel Committee on Banking Supervision is a committee of banking supervisory authorities that was established by the central bank governors of the Group of Ten countries in 1975. It provides a forum for regular cooperation on banking supervisory matters. Its objective is to enhance...
. In 1997–98 he was head of Consob, Italy's stock market supervision agency. He was a member of the European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
's six-member executive board from its foundation in 1998 until the end of May 2005. In October 2005 he became president of Paris-based think tank Notre Europe
Notre Europe
Notre Europe is an independent think tank based in Paris. Founded in 1996 by Jacques Delors, it aims to "think a united Europe."-Research:Notre Europe's research is focused around four axes:...
.
On 17 May 2006 he was appointed as Economy and Finance Minister in the government of Romano Prodi
Romano Prodi
Romano Prodi is an Italian politician and statesman. He served as the Prime Minister of Italy, from 17 May 1996 to 21 October 1998 and from 17 May 2006 to 8 May 2008...
, serving in that post until May 2008, when a new government headed by Silvio Berlusconi
Silvio Berlusconi
Silvio Berlusconi , also known as Il Cavaliere – from knighthood to the Order of Merit for Labour which he received in 1977 – is an Italian politician and businessman who served three terms as Prime Minister of Italy, from 1994 to 1995, 2001 to 2006, and 2008 to 2011. Berlusconi is also the...
took office following the April 2008 general election
Italian general election, 2008
A snap general election was held in Italy on 13 April and 14 April 2008. The election came after President Giorgio Napolitano dissolved parliament on 6 February 2008 following the defeat of the government of Prime Minister Romano Prodi in a January 2008 Senate vote, and the unsuccessful tentative...
. From October 2007 to April 2008 he was Chairman of the IMFC (International Monetary and Financial Committee), the top policy steering committee of the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF).
Personal life
He was married to the economist Fiorella KostorisFiorella Kostoris
Fiorella Kostoris Padoa-Schioppa is an Italian economist who is currently Professor at the University of Rome . She is also a professor at the College of Europe in Bruges...
; they have three children. After their divorce, he became the companion of Barbara Spinelli, a journalist, daughter of Altiero Spinelli
Altiero Spinelli
Altiero Spinelli was an Italian political theorist and a European federalist. Spinelli is referred to as one of the "Founding Fathers of the European Union" due to his co-authorship of the Ventotene Manifesto, his founding role in the European federalist movement, his strong influence on the first...
and Ursula Hirschmann
Ursula Hirschmann
Ursula Hirschmann was a German anti-fascist activist and an advocate of European federalism....
.
Death
Padoa-Schioppa died on 18 December 2010, aged 70, after suffering a fatal heart attack during a dinner he had organized in Rome.Terms coined or popularized by Padoa-Schioppa
In 2006 Padoa-Schioppa coined the expression “il tesoretto” (the little treasure) to describe the increased government revenues under his administration. The term was widely used by politicians as they debated how this new money should be spent. In October 2007 he spoke to a parliamentary committee about the government's plan for tax relief (approx. 500€/year) to people 20-30 years old still living with their family, saying it would help them move out on their own. He used the ironic or sarcastic term "bamboccioni" (big dummy boys, or big stuffed children) and this created a big fuss in Italian public opinion.Newspapers received numerous letters from readers personally taking offence and pointing out that he understood little about the situation of a considerable part of the 20-30 years old Italian population, who live on approximately 1,000€ per month and cannot afford to leave their parents’ house . According to some lexicographers, "bamboccioni" was the most popular new Italian word of 2007. He was the first to describe the euro as "a currency without a State" (in a book published in 2004), a term that was later popularized by Otmar Issing
Otmar Issing
Otmar Issing is a German economist, presintent of the Center for Financial Studies and former member of the board of the Deutsche Bundesbank and of the Executive Board of the European Central Bank . He is advisor for Goldman Sachs...
.
Role in the creation of the euro
Padoa-Schioppa has been called the “intellectual impetus” behind the euro and the “founding father” of the new currency . In an economics paper written in 1982 he pointed out that it is impossible for a group of countries like the EU to simultaneously aim at:- free trade,
- capital mobility,
- independent domestic monetary policies, and
- fixed exchange rates.
These four goals, each apparently desirable on its own, he called "the inconsistent quartet" (see also the similar Impossible trinity
Impossible trinity
The Impossible Trinity is a trilemma in international economics suggesting it is impossible to have all three of the following at the same time:...
concept).
At that time, European Union countries maintained some restrictions on trade and (especially) on capital movements. These were gradually eliminated through the Single Market programme and the liberalization of capital movements, so that by the late 1980's one of the two remaining objectives had to go to for consistency to be maintained. He proposed that the third objective (independent monetary policies) be abandoned, by creating a single currency and a single European central bank, so that the other three objectives could be attained. The Delors Report of April 1989 endorsed this view and recommended a European Monetary Union (EMU) with a single currency. He worked on designing and setting up the new European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
and became one of the first executive board members (June 1998-May 2005).
External links
- Bio from the official website, in English
- Official website, in Italian
- Biography of Tommaso Padoa-Schioppa from the Ministry website
- Short Bibliography of Tommaso Padoa-Schioppa
- Notre Europe, think tank presided by Tommaso Padoa-Schioppa
- Tribute to Tommaso Padoa-Schioppa (from Notre EuropeNotre EuropeNotre Europe is an independent think tank based in Paris. Founded in 1996 by Jacques Delors, it aims to "think a united Europe."-Research:Notre Europe's research is focused around four axes:...
) - Tribute to Tommaso Padoa-Schioppa (from Bocconi UniversityBocconi UniversityBocconi University is a private university located in central Milan, beside Parco Ravizza. Bocconi provides undergraduate, graduate and post-graduate education, in addition to a range of double degree programs, in the fields of economics, management, finance and law. According to many university...
)