The Increasing Economic divergence between north and south is eurozone’s essential problem

Former Prime Minister Alfred Sant told the European Parliament that one essential problem of the eurozone has become the increasing economic divergence between its different parts, notably between the north and south of Europe. Dr. Sant was reacting to the ‘Report on the review of the economic governance framework stocking and challenges’ presented to the European Parliament by MEP Pervenche Berès, Head of the French S&D Delegation, which he voted against.

Dr. Sant said that the report emphasizes the coordination of economic policies of member states rather than a convergence of economic performance and outcomes. The report, said Dr. Sant, supports the partial deepening of eurozone structures without making this dependent on progress in efforts to achieve greater economic convergence. It proposes to harmonize tax structures when this will further serve to reduce the flexibility of those economies which in order to boost their competitivity and performance, given their limited endowments, will need to differentiate their tax profiles, naturally under conditions of full transparency.

Dr. Sant said that the benchmarks that are being used to stabilize and run the system – which were fully endorsed in the Berès resolution – attack only the symptoms but not the economic fundamentals that are producing this result. Dr. Sant said that the discipline being followed on the basis of the set benchmarks might be contributing further to the divergences. Partial deepening of the existing arrangements could actually serve to further widen the divergences even within a steady state, stabilized context for the eurozone as a whole.

‘For these reasons, I cannot therefore support the report.’ concluded Dr. Sant.

The final vote on the resolution was 317 in favour, 254 against and 9 abstentions. Dr Sant and the whole Maltese Delegation (S&D and EPP Malta) voted against the final vote of that resolution.

Maltese Version – ‘PROBLEMA ESSENZJALI TAŻ-ŻONA EWRO HIJA D-DIVERĠENZA EKONOMIKA BEJN IN-NORD U S-SUD’

L-ex Prim Ministru Alfred Sant qal lill-Parlament Ewropew li problema essenzjali taż-żona ewro hija d-diverġenza dejjem tiżdied bejn żoni differenti tal-Ewropa, l-aktar bejn in-Nord u s-Sud. L-Ewroparlamentari Malti kien qed jirreaġixxi għal rapport fuq il-governanza ekonomika fl-Unjoni Ewropea imressaq mill-MEP Pervenche Berès, Kap tad-Delegazzjoni Franċiża fl-S&D. Dr. Sant ivvota kontra dan ir-rapport.

Dr. Sant qal li dan ir-rapport jenfasizza l-koordinament bejn il-politika ekonomika tal-membri stati tal-UE, aktar minn konverġenza ta’ attivita` ekonomika. Ir-Rapport, qal Dr. Sant, jappoġġja ħidma maħsuba biex l-istrutturi ta’ tmexxija taż-żona tal-ewro jissaħħu biċċa biċċa mingħajr ma jiżgura li dan isir jekk ikun hemm progress tassew fl-isforzi meħtieġa biex l-ekonomiji jiġu eqreb ta’ xulxin. Ir-rapport qed jipproponi li l-mod kif jitfasslu t-taxxi jsir l-istess għal kulħadd meta dan se jservi biex inaqqas il-flessibilta` ta’ dawk il-pajjiżi li għax għandhom limitazzjonjiet f’kif jistgħu jikkompetu ma’ ħaddieħor, ikollhom jaraw kif se jdaħħlu taxxi differenti minn ta’ ħaddieħor, u sintendi anki jekk jagħmlu hekk, josservaw trasparenza sħiħa.

Dr. Sant qal li l-benchmarks biex tistabilizza u titmexxa s-sistema, miġbura fir-riżoluzzjoni ta’ Berès, jattakkaw biss is-sintomi u mhux is-sistemi ekonomiċi li qed joħolqu r-riżultati li għandna. Dawn il-benchmarks jistgħu jkomplu jikkontribwixxu biex jiżdiedu d-diverġenzi li diġa` jeżizistu fiż-żona ewro’.

‘Għal dawn ir-raġunijiet, ma nistax nappoġġja dan ir-rapport.’ temm jgħid Dr. Sant.

Fil-vot finali dwar ir-rapport 317 ivvotaw favur, 254 ivvutaw kontra u 9 astjenew. Dr. Sant u d-delegazzjoni Maltija kollha (S&D u EPP Malta) ivvotaw kontra l-vot final tar-riżoluzzjoni.