“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 implementation 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, emphasising 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.

He 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.”

“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.

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