Europe needs a strategy that fits its present realities

Europe needs a strategy that fits its present realities and needs to get over the fixation that the priority should remain that of not letting 2008 happen again. Dr. Alfred Sant, reacting to a report on the implimentation of 2015 priorities on economic policy coordination, told the European Parliament in Strasbourg that one size fits all criteria, as for pension issues, seem to be proliferating. Social considerations which were a backbone of European macroeconomic policies, are frequently sidelined, he said, emphasizing the need to change perspectives. Dr. Sant was Shadow Rapporteur on behalf of the S&D at the Economy and Monetary Affairs Committee (ECON) which discussed the report before being presented to the European Parliament.

Dr. Sant said that member states must now satisfy rules that in practice impose more constraints than exist on states in the USA, under a federal system, which is not the case for the EU. Other rules, such as for the banking union, necessary though they are, have also introduced down the line, new costs and delays in the circulation of funds.

Dr. Sant said that such growth as there has been, remains fragile. ‘Despite the quantitative easing programme run by the European Central bank, its President Mario Draghi stated again that he’s prepared to do anything to keep the system on track. Saying that once was necessary; having to say it twice becomes less effective. So perhaps we need to evaluate critically the semester system of surveillance.’ Said Dr. Sant.

‘At the end of the semester cycle, one still wonder whether our approach is as effective as the claim made originally for it. True, deficits have been curtailed in a majority of member states and arguably, national debt levels are going down. But could that have not happened anyway, given normal economic and financial pressures? Not so we are told. Our procedures were designed to forestall financial Armageddons among member states. In this they have succeeded by ensuring that rules based methods, compatible with free markets, apply to all national players. However, these methods have not led to economic growth that is at the desired level.’ said Dr. Sant.

Maltese Version – L-EWROPA TEĦTIEĠ POLITIKA EKONOMIKA U FINANZJARJA SKONT L-ISFIDI ĠODDA TAL-LUM

L-Ewropa ma tistax tibqa’ tiffissa fuq il-problemi li nqalgħu fl-2008 imma jeħtieġ tfassal politika ekonomika u finanzjarja skont l-isfidi tal-lum. Dr Sant kien qed jirreaġixxi għar-rapport dwar l-implimentazzjoni tal-prijoritajiet tal-2015 dwar il-koordinament tal-politika ekonomika. Hu qal lil Parlament Ewropew li kriterji ta’ ‘one size fits all’, pereżempju bħal fil-kas tal-pensjonijiet, qed jiżdiedu bil-kbir. Il-kunsiderazzjonijiet soċjali, li qabel kienu s-sinsla tal-politika ekonomika Ewropea, issa qed ikunu mwarrba ta’ spiss. Dr Sant emfasizza il-ħtieġa biex dan jinbidel. Il-Kap tad-delegazzjoni Maltija Laburista huwa s-‘Shadow Rapporteur’ għal-Partit tas-Soċjalisti u Demokratiċi (S&D) fil-kumitat tal-Affarijiet Ekonomiċi u Monetarji (ECON).

Dr Sant qal li fil-preżent l-istati membri jridu jimxu ma’ regoli li fil-prattika jimponu aktar issikkar mir-regoli li għandhom l-istati fl-Istati Uniti b’sistema federali. ‘Dan mhux il-kas tal-UE’ qal Dr Sant. Regoli oħra, bħall-Unjoni Bankarja, għalkemm huma meħtieġa, daħħlu spejjeż ġodda u dewmien fiċ-ċirkolazzjoni tal-flejjes.

Dr Sant qal li t-tkabbir li l-Ewropa esperjenzat jibqa’ fraġli. ‘Minkejja l-programm ta’ quantitative easing’ tal-Bank Ċentrali Ewropew, il-President Mario Draghi reġa’ qal li lest li jagħmel minn kollox biex is-sistema terġa’ timxi fit-triq it-tajba. Li jgħid din l-istqarrija darba kien meħtieġ; li kellu jirrepetiha jfisser li ma għadhiex effettiva. Għalhekk jeħtieġ nevalwaw b’mod kritiku s-sistema ta’ sorveljanza tas-semestru.’ Qal Dr Sant.

‘Fl-aħħar taċ-ċiklu tas-semestru, wieħed jikkontempla dwar il-metodu li qed jintuża. Huwa effettiv daqs kemm qed naħsbu? Huwa minnu li d-defiċits tnaqqsu fil-maġġoranza tal-istati membri, u anke l-livell tad-dejn beda nieżel. Imma dan ma setax iseħħ xorta, taħt forzi ekonomiċi u finanzjarji normali? Qed jintqal li le, dan ma setax iseħħ. Il-proċeduri tagħna kienu mfassla biex iwaqqfu Armageddons finanzjarji fost l-istati membri. F’dan irnexxielhom jiżguraw li metodi bbażati fuq ir-regoli u kompatibbli mas-suq ħieles, ikunu applikati fl-istati nazzjonali kollha. Madanakollu, dawn ir-regoli ma wasslux għal tkabbir ekonomiku fil-livelli mixtieqa.’ Qal Dr Sant.