Economic divergencies growing in a union which has convergence as one of its major aims

The Head of the Maltese Labour Delegation at the European Parliament said that the fundamental problem within the European Union is that economic divergences have been growing in a Union that has convergence as one of its major aims. Dr. Alfred Sant said that the Union still lacks the tools that would counter the growing gaps between north and south. Moves towards greater union would be counterproductive in the absence of a policy that is functioning successfully at a national level and in a wider framework to reduce economic divergence. If we had such a policy, securing a greater degree of national ownership for country specific recommendations would be easier, said Dr. Sant.

Dr. Sant, Shadow Rapporteur on behalf of the S&D group, was addressing the ECON committee on the discussion “European Semester for economic policy coordination: implementation of 2015 priorities” with representatives of national parliaments.

Dr. Sant remarked that the social consequences of country specific recommendations have been in practice ignored. There has been an overemphasis on so-called reforms of the labour markets, which have failed to make a significant impact on employment levels in many countries. Meanwhile they eroded labour rights and encouraged precarious employment. Reform of labour markets cannot any longer be put forward as the leading structural reform. There needs to be greater focus on the elimination of hidden monopolies, restriction and digitalisation of government bureaucracy, modernising legal systems, and incentivising those who produce.
Dr. Sant said that growth rates in the Eurozone remain low and even if some industrial indicators have recently been better than anticipated, the recovery is still considered fragile. Dr. Sant said that the point made most frequently about country specific recommendations is that they are implemented in a ragged fashion, or even not implemented at all. One reason for this, we are told, is that national governments and national parliaments do not assume ownership of the Country Specific Recommendations (CSRs). Another reason could be that it is unclear whether the defining strategy behind the individual recommendations is to bolster the European economy as a whole, or that of the country to which the CSR is addressed.
The time may have come to critically evaluate the formulation and impact of CSRs with the aim of making them more effective and acceptable as policy tools. This is not only because the outcomes in growth terms have up to now hardly been satisfactory. Also, the agents who propose or draft recommendations are not necessarily or always reliable and faultless.
For instance CSRs are all too often based on the oversimplified view that structural reforms have a mechanical and automatic impact on jobs and growth, so that if all countries reform their labour markets at the same time, the extra demand created by the new jobs created will have a spillover effect across the Eurozone. ‘This is incorrect.’ Said Dr. Sant.

Maltese Version – ‘QED JIKBRU D-DIVERĠENZI EKONOMIĊI F’UNJONI LI GĦANDHA L-GĦAN LI TQARREB L-EKONOMIJI LEJN XULXIN’

Il-Kap tad-delegazzjoni Laburista Maltija fil-Parlament Ewropew qal li l-problema fundamentali fi ħdan l-Unjoni Ewropea hija li d-diverġenzi ekonomiċi baqgħu jikbru minkejja li l-Unjoni għandha l-għan ewlieni li tqarreb l-ekonomiji lejn xulxin. Dr Sant qal li sfortunatament dan juri li għad ma għandniex strumenti ekonomiċi li jaħdmu biex jitnaqqsu d-differenzi bejn in-Nord u s-Sud tal-Ewropa. Politika favur aktar għaqda fl-Unjoni Ewropea taħdem kontrina peress li għad ma hemmx politika li taħdem b’suċċess, kemm fuq livell nazzjonali kif ukoll f’qafas aktar wiesa’, biex jitnaqqsu d-diverġenzi ekonomiċi. Kieku kellna politika ta’ dan it-tip, ikun aktar faċli biex fuq livell nazzjonali l-pajjiżi jaddottaw ir-rakkomandazzjonijiet speċifiċi għal kull pajjiż, qal Dr Sant.

Dr Sant kien qed jindirizza lil Kumitat Ekonomiku bħala ‘shadow rapporteur’ għall S&D waqt id-diskussjoni, “European Semester for economic policy coordination: implementation of 2015 priorities” fil-preżenza ta’ rappreżentanti mill-parlamenti nazzjonali.

Dr Sant saħaq li l-konsegwenzi soċjali tar-rakkomandazzjonijiet speċifiċi qed ikunu injorati. Hu qal li saret enfażi kbira wisq fuq ir-riformi tas-suq tax-xogħol, iżda f’ħafna pajjiżi dawn ma rnexxilhomx jagħmlu impatt kbir biżżejjed fuq il-livelli tal-qgħad. Id-drittijiet tal-ħaddiema tnaqqru u taw spinta lix-xogħol prekarju. Ir-riformi tas-suq tax-xogħol ma għandhomx jibqgħu jintużaw bħala l-pilastru ewlieni għar-riformi strutturali. Irid ikun hekk aktar ħidma favur it-tneħħija ta’ monopolji moħbija, restrizzjonijiet fil-burokrazija governattiva, immodernizzar fis-sistemi legali u inċentivi għal dawk li jipproduċu.

Dr Sant qal li r-rati ta’ tkabbir fiż-żona ewro għadhom baxxi u anki jekk riċentement xi indikaturi tal-industrija kienu aktar pożittivi milli kien maħsub, it-triq għal fejqan għadha fraġli. Dr Sant qal li punt ewlieni li jissemma’ spiss huwa li r-rakkomandazzjonijiet speċifiċi għal kull pajjiż, jew ma jkunux implimentati jew ikunu implimentati partijiet minnhom biss. Raġuni għal dan hija li l-gvernijiet nazzjonali u l-parlamenti nazzjonali ma jħossuhomx kmandi ta’ dawn ir-rakkomandazzjonijiet. Raġuni oħra tista’ tkun li l-istrateġija wara dawn ir-rakkomandazzjonijiet mhix ċara. Ir-rakkomandazzjonijiet huma maħsuba biex jagħtu spinta lil ekonomija Ewropea b’mod sħiħ, jew lil pajjiż individwali li lejh ikunu indirizzati r-rakkomandazzjonijiet speċifiċi? Staqsa Dr. Sant.
L-Ewroparlamentari qal li wasal iż-żmien li nanalizzaw b’mod kritiku l-ħolqien u l-impatt tar-rakkomandazzjonijiet speċifiċi, bl-għan li nagħmluhom aktar effettivi u aktar aċċettabbli bħala għodda għall-ippjanar. Dan għandu jsir mhux biss għax it-tkabbir ekonomiku sa issa ma kienx sodisfaċenti, iżda għax il-persuni li joħolqu dawn ir-rakkomandazzjonijiet mhumiex infallibbli.
Dr Sant spjega kif ħafna drabi r-rakkomandazzjonijiet speċifiċi jkunu bbażati fuq il-kriterju li r-riformi strutturali għandhom impatt awtomatiku fuq l-impjiegi u t-tkabbir. Dan ifisser li jekk il-pajjiżi kollha jirriformaw is-suq tax-xogħol fl-istess waqt, jinħolqu aktar impjiegi u tiżdied id-domanda fi ħdan iż-żona ewro kollha. ‘Dan it-twemmin mhux korrett’. Qal Dr Sant.