Austerity measures causing widespread misery – Scicluna

The rise of far-right politicians as a result of austerity measures across Europe is conditioning mainstream parties to emulate them, according to Labour MEP Edward Scicluna.

Prof. Scicluna made this observation during a breakfast meeting for trade unions last week, during which he gave an overview of the economic governance package being discussed in the EU.

“Look at how Sarkozy in France sealed the borders for migrants and Italy’s behaviour,” Prof. Scicluna said, identifying France and Italy as examples where mainstream political parties were pandering to pressure from far-right parties that are gaining support from disgruntled voters.

Prof. Scicluna, who is vice president of the European Parliament’s Economic and Monetary Affairs Committee, lambasted the German-led EU drive to persist on introducing austerity measures at all costs, which was causing widespread misery.

“I may be a political novice but I cannot believe that any talk of encouraging investment and growth is unfashionable. All the German-led Council is interested in is expenditure cuts, trimming deficits and austerity measures.”

Speaking about the economic governance package, Prof. Scicluna said it did not enjoy the support of the Socialists and Democrats Group – the second largest political group in the European Parliament – because it was giving greater powers to the Commission and was over-emphasising sanctions as the only way forward.

“The package lacks a convincing economic strategy to help the eurozone countries resolve the current euro crises and create more jobs. There is an expectation that the German model can and should be applied by every eurozone member state and this is not right.”

Prof. Scicluna said that austerity measures as were being imposed on Greece, Ireland and Portugal did not give these countries enough muscle to compete and grow.

“Countries have preferred to shield and prop up banks, which caused the problem, rather than restructure debt by trimming loans,” he said.

Prof. Scicluna warned the unions to be on the look-out for decisions that might erode workers’ rights and create social hardship.

The European People’s Party, of which the Nationalist Party was a member, and the Council led by Germany wanted to remove collective bargaining by unions, he said, adding that ­­the move had been blocked by the Socialists and Democrats Group.

ksansone@timesofmalta.com