The challenge for integration in the EU beyond 2020 was based on three bridges, Mario Monti, former Commissioner and former Prime Minister of Italy said at the opening session of the two-day Economist Business Roundtable with the government of Malta.

He said were between north and south, especially in the eurozone, a bridge between UK and the rest of the EU, and one between EU and its citizens.

Speaking at the Hilton, he challenged the perception that the economic crisis originated in the south.

“It was Germany and France with complicity of Italy in 2003 that caused it when they breached the Stability and Growth Pact, without the agreement of European Commission but which council members allowed. And then these same member did not allow other member states to breach the pact,” he said.

“And the problems in Greece were the result of this. Eurostat should have been given more intrusive powers to check reports on member states’ finances… But it was Germany, France and the larger states which baulked at the idea of this,” he said.

Mr Monti also proposed that the UK should take a different approach in the run up to the 2017 referendum on its EU membership, which will be held while Malta holds the EU rotating presidency.

“I hope that the UK will take the offensive and say ‘we would be happy to work with you but only if you take single market openness, reform and competition seriously’. I think this would work much better than the defensive position currently being adopted.”

“If the UK did this it would not be isolated but would have powerful allies and the countries in north, central and eastern have a sympathy with its position. And Germany, France and Italy would find it hard to rebut this challenge as it would be in the interest of their own citizens to live up to the UK challenge.

The conference, on the theme of Invigorating Investment and Growth, was also addressed by former EU Commissioner Peter Mandelson, who warned that one could not understand the policy choices that Europe has to make without understanding the political mood in Europe, “which has become much more volatile and a much greater influencing factor than in the past”.

“Do politicians understand the public demand for change and public hesitation in embracing changes?” he said, saying that electorates exhausted by five years of austerity would probably find their voice in the May European Parliament elections.

“Euroscepticism is not solely a British issue. If Eurosceptic parties do well in EP elections - as I suspect they will – it  will send a very powerful signal of discontent about the direction the EU is taking. The most likely political response will be a weakening of nerve and backpedalling on integration….

“We will have no alternative but to deal with the architectural design flaws of the EU,” he said.

The audience of over 300 of Malta’s most influential people also heard Deputy Prime Minister Louis Grech say that the time had come for a note of hope.

“We should not be brandishing the slogan ‘austerity or perish’. Any austerity programme should always be coupled with a strong measure of hope,” he said.

Mr Grech said that the themes for Malta’s presidency had not yet been identified but he hoped that the conference would allow Malta to hone in on what the priorities should be.

 

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