The European Fund for Strategic investments proposed by the Juncker Commission to compensate for the lack of investment in the Eurozone fund could not counter the imbalances created in the Eurozone, MEP Alfred Sant said.

Speaking at the European Parliament during a debate on the fund, the former Prime Minister said the only way by which to counter the imbalances created in the Eurozone was through a central investment fund, massive in scope and targeted to rebalance wealth and employment creation within the euro zone.

The Juncker fund, he said, would hardly any dent on economic stagnation in Europe, Dr Sant said.

He said that one thing is in common among those who pushed for all-out fiscal consolidation and those who insisted that the total priority must be economic stimulus was that both agreed that investment in Europe was lagging.

“I sympathise with people who argue that better this than nothing. However fundamentally, the malaise of the eurozone results from deep imbalances between its constituent parts.

"They have created a dynamic by which internal economic divergences continue to widen. The new investment monies being mobilised by the Juncker initiative are minimal, in relative and absolute terms.

"Most have been subtracted from monies voted by the EU for research, which is highly regrettable,’ Dr Sant said.