Malta must be cautious on new initiatives on policy initiatives covering the Eurozone

Maltese MEP Alfred Sant said today that being a policy taker in the eurozone, Malta has no alternative but to be cautious about new policy initiatives covering the zone. These initiatives could serve in future to emphasize further its policy taking role, while reducing the margins for autonomous action that would reflect the special circumstances facing these islands. Dr Sant was key speaker on Malta’s experience in the eurozone in a business Breakfast organised by the Malta Institute of Management in St Julians.
“Within the eurozone, Malta can only be a policy taker, certainly not a policy maker. I believe that we are not much better than when we were when an integral part of the sterling zone up till some years after Independence. This does not mean that we are paralysed as we face the choices that will be coming up. It means that our future economic success will depend on how well we are able to interpret arising situations and how correctly we succeed in predicting outcomes within the eurozone decision making structures.”
The Maltese MEP said that regarding the array of decisions that will come up in the short to medium term, we need on the basis of the acquired experience to have an opinion as to whether it is in our interests:
Dr Sant said that he agrees that the European Stability Mechanism which has been used to support the failing finances of governments, should be turned into a kind of IMF for Europe. Such a new IMF for Europe should be used for an initial period, to backstop the Authority which watches over the resolution of European banks.
He spoke against the idea that there should be a eurozone finance minister with budgetary clout.
Dr Sant said a banking union within the eurozone should include as soon as possible a Europe wide deposit insurance scheme. But said he would postpone his decision whether the EU budget should contain as of now a revenue and expenditure line covering the eurozone.
The Maltese MEP said ten years ago he believed that it would have been more prudent to wait till the full consequences of EU accession were absorbed by the island before euro entry was attempted. Countries like Sweden, Poland and Hungary still believe this.
“However, once the then government was determined to join the eurozone, it did not make much sense to contest this decision and create new tensions when the economy was already needing to digest the full application of EU regulations.” remarked Dr Sant.

Intervention of Maltese MEP Alfred Sant on Malta’s experience in the eurozone during a Business Breakfast

Maltese Version – MALTA GĦANDHA TKUN KAWTA F’INIZJATTIVI POLITIĊI ĠODDA FIŻ-ŻONA EWRO

Alfred Sant qal li Malta, bħala riċevitur tal-politika taż-żona ewro, ma għandhiex triq oħra ħlief dik li tkun kawta f’inizjattivi politiċi ġodda maħsuba għaż-żona ewro. Dawn l-inizjattivi fil-futur jistgħu jservu biex jenfasizzaw aktar ir-rwol ta’ riċevitur, filwaqt li jnaqqsu l-azzjonijiet awtonomi li jirriflettu ċ-ċirkostanzi speċjali tal-gżejjer Maltin. L-Ewroparlamentari kien wieħed mill-kelliema ewlenin f’Business Breakfast dwar l-esperjenza ta’ Malta fiż-żona ewro organizzat mill-Istitut Malti tal-Management f’San Ġiljan.
“Fi ħdan iż-żona ewro, Malta tista’ biss ġġarrab u mhux tfassal il-politika. Nemmen li ma tantx aħna aħjar miż-żmien meta konna parti integrali miż-żona tal-isterlina sa snin wara l-Indipendenza. Dan ma jfissirx li aħna ipparalizzati meta naffaċċjaw l-għażliet li se jiġu fuqna. Ifisser li s-suċċess ekonomiku tagħna se jiddependi minn kemm se ninterpretaw tajjeb is-sitwazzjonijiet li se jinħolqu u kemm se jirnexxielna nbassru dak li se jseħħ b’mod korrett fi ħdan l-istrutturi li fihom jittieħdu d-deċiżjonijiet fiż-żona ewro.”
L-Ewroparlamentari qal li fil-firxa wiesgħa ta’ deċiżjonijiet li se jiġu fi żminijiet qosra jew medji, fuq il-bażi tal-esperjenza li ksibna, għandna nifformaw opinjoni ta’ x’inhu fl-interess tagħna jew le.
Dr Sant qal li jaqbel li l-Mekkaniżmu ta’ Stabilita` Ewropea li ntuża biex jappoġġja il-finanzi tal-gvernijiet li kienu qed ifallu, għandu jinbidel f’għamla ta’ Fond Monetarju Internazzjonali (FMI) għall-Ewropa. Dal-Fond jista’ jintuża flok l-Awtorita` li tissorvelja r-riżoluzzjoni tal-banek Ewropej.
Dr Sant tkellem kontra l-idea ta’ ministru tal-finanzi għaż-żona ewro bil-baġit tiegħu.
L-Ewroparlamentari qal li unjoni bankarja fi ħdan iż-żona ewro għandha tinkludi malajr skema ta’ depożitu tal-assigurazzjoni fuq skala Ewropea. Iżda qal li se jipposponi d-deċiżjoni tiegħu dwar għandux il-baġit tal-UE ikollu linja ta’ dħul u infiq li tkopri ż-żona ewro.
Dr Sant qal li għaxar snin ilu kien jemmen li kien ikun aktar prudenti li nassorbu l-konsegwenzi kollha tad-dħul fl-UE qabel ma’ nipprovaw nidħlu fiż-żona ewro. Pajjiżi bħall-Iżvezja, Polonja u Ungerija għadhom jemmnu dan.
“Iżda, ġaladarba l-gvern ta’ dak iż-żmien kien determinat li jingħaqad maż-żona ewro, ma kienx jagħmel sens nikkontestaw din id-deċiżjoni u noħolqu tensjonijiet ġodda meta l-ekonomija diġa` kellha l-ħtieġa li tadatta għar-regoli kollha tal-UE.” qal Dr Sant.