A strong euro requires a stronger economic and monetary union

Former Prime Minister and Maltese MEP Alfred Sant told a Conference at the European Parliament in Brussels that a strong euro requires a stronger Economic and Monetary Union. Dr Sant chaired a meeting titled “Deeping the Economic and Monetary Union by 2025” organised by the European Parliamentary Financial Services Forum”.
Dr Sant said the single currency is one of Europe’s most significant and tangible achievements.
“It has helped our economies to integrate and has brought Europeans closer together. But it has always been much more than a monetary project. It was conceived as a promise of prosperity – and that is how it must remain, also for those that will become members of the euro area in the future. That promise of prosperity became more important than ever as Europe was shaken by the financial and economic crisis.”
The painful legacy of those years has left Europeans wanting more of what the single currency offers: more stability, more protection, and more opportunities. Determined action in response to the crisis to improve the instruments and architecture of the euro area partially met these expectations.
Today the EU economy is growing again and unemployment has fallen to its lowest level in eight years. But the euro area does not need only fire fighters. It also needs builders and long-term architects.
“Our Economic and Monetary Union still falls short on three fronts: –
First, it is not yet able to reverse sufficiently the social and economic divergences between and within euro area members that emerged from the crisis. But could it be that social and economic divergences are systemically inherent in the existing Eurozone set-up?
Second, these centrifugal forces come with a heavy political price. If they remain unaddressed, they are likely to weaken citizens’ support for the euro and create different perceptions of the challenges, rather than a consensus on a vision for the future.
Finally, while the EMU is stronger, it is not yet fully shock-proof. With the Rome Declaration signed on 25 March 2017, EU leaders committed to “working towards completing the Economic and Monetary Union; a Union where economies converge”. Now, this promise must be delivered.”
The Maltese MEP emphasised that this requires political courage, a common vision and the determination to act in the common interest.
Dr Sant then chaired the event by fielding questions on topics related to the subject to the speakers including Brunco Colmant, Professor and Chief Economist, Degroof Petercam Bank, Gregorio De Felic, Chief Economic Intesa Sanpaolo, Philippe Gudin Chief Euro area Economist, Barclays, Karel Lanoo, CEO, Centre for European Policy Studies, Gilles Noblet, Deputy Director of International & European Relations, ECB, Dirk Schoenmaker, Senior Fellow, Bruegel.
The European Parliamentary Financial Services Forum (EPFSF) was founded in 2000 to facilitate and strengthen the exchange of information on financial services and Europe’s financial markets, between the European Parliament and the financial services industry.

Maltese Version – EWRO B’SAĦĦITHA TEĦTIEĠ GĦAQDA EKONOMIKA U MONETARJA AKTAR SODA

Ewro b’saħħitha teħtieġ għaqda Ekonomika u Monetarja aktar soda. Dan qalu l-Kap tad-Delegazzjoni Laburista fil-Parlament Ewropew Alfred meta mexxa laqgħa bit-tema “Approfondiment tal-Għaqda Ekonomika u Monetarja sal-2025” organizzata mill-Forum tas-Servizzi Finanzjarji tal-Parlament Ewropew.
Dr Sant qal li l-munita ewro hija waħda mill-aktar kisbiet tanġibbli u sinifikattivi tal-Ewropa.
“Għenet lil ekonomiji tagħna jintegraw u qarrbet l-Ewropej lejn xulxin. Imma dan il-proġett qatt ma kien wieħed monetarju biss. Il-proġett twieled fuq il-wegħda li tikber il-prosperita` – u hekk għandu jibqa’, anki għal dawk li se jidħlu membri fiż-żona ewro fil-futur. Il-wegħda ta’ prosperita` saret rilevanti aktar minn qatt qabel meta l-Ewropa theżżet bil-kriżi finanzjarja u ekonomika. It-tbatijiet li ħalla dan il-wirt f’dawk is-snin qanqal lil Ewropej tant li jridu aktar minn dak li tista’ toffri l-munita waħda: aktar stabilita`, aktar protezzjoni, u aktar opportunitajiet. Azzjoni determinata biex jitjiebu l-istrumenti u t-tfassil taż-żona ewro bħala parti mit-tweġiba għal kriżi, laħqu parzjalment dawn l-aspettattivi.”
Dr Sant qal li llum l-ekonomija Ewropea reġgħet qed tikber u l-qgħad qiegħed fl-iktar rata baxxa fl-aħħar tmien snin.
“Imma l-ewro ma għandhiex bżonn biss gwardjani li jipproteġuha. Teħtieġ ukoll bennejja u arkitetti biex biż-żmien tkompli tinbena. L-Għaqda Ekonomika u Monetarja tagħna għadha nieqsa minn dawn it-tliet affarijiet:-
L-ewwel nett, għadha mhux kapaċi treġġa’ lura biżżejjed id-diverġenzi ekonomiċi u soċjali bejn u fi ħdan il-membri taż-żona ewro li nħolqu mill-kriżi. Jista’ jkun li d-diverġenzi soċjali u ekonomiċi huma riżultat sistematiku tal-fassla eżistenti tal-Ewro?
It-tieni punt, il-forzi li mhux ċentrali fit-tmexxija tal-ewro qed iħallu impatt politiku qawwi. Jekk mhux se jiġu indirizzati, se jnaqqsu l-appoġġ li ċ-ċittadini għandhom lejn l-ewro u se joħolqu perċezzjonijiet differenti tal-isfidi, aktar milli qbil dwar il-viżjoni tal-ewro għall-futur.
It-tielet u l-aħħar punt, minkejja li l-Għaqda Ekonomika u Monetarja hija aktar b’saħħitha, għadha m’hix b’saħħitha biżżejjed biex tirreżisti x-xokkijiet. Bid-Dikjarazzjoni ta’ Ruma tal-25 ta’ Marzu 2017, il-mexxejja Ewropej wegħdu li “jaħdmu lejn l-iffinalizzar tal-Għaqda Ekonomika u Monetarja; Għaqda fejn l-ekonomiji jersqu qrib xulxin.” Issa, din il-wiegħda trid tinżamm.”
Dr Alfred Sant emfasizza li dan kollu jeħtieġ kuraġġ politiku, viżjoni komuni u determinazzjoni biex l-aġir ikun għall-interess komuni.
L-Ewroparlamentari mbagħad mexxa l-laqgħa bl-interventi tal-kelliema Brunco Colmant, Professur u Chief Economist, Degroof Petercam Bank, Gregorio De Felic, Chief Economic Intesa Sanpaolo, Philippe Gudin Chief Euro area Economist, Barclays, Karel Lanoo, CEO, Centre for European Policy Studies, Gilles Noblet, Deputy Director of International & European Relations, ECB, Dirk Schoenmaker, Senior Fellow, Bruegel.
Il- Forum tas-Servizzi Finanzjarji tal-Parlament Ewropew twaqqaf fis-sena 2000 biex jiffaċilita u jsaħħaħ l-iskambju ta’ informazzjoni fuq is-servizzi finanzjarji u s-swieq finanzjarji Ewropej, bejn il-Parlament Ewropew u l-industrija tas-servizzi finanzjarji.