A major dilemma facing small EU is that while it is in their interest that the EU strengthens controls on security and tax evasion, they want to maintain and secure their sovereignty on national governance involving the major sectors of administration.
“A strong Europe is in everyone’s interests, but a federal Europe will silence the voice of these small member states, including Malta,” Alfred Sant told a large audience attending a conference on ‘The future of Europe’ in Qawra.
Dr Sant said that the recent threats of terrorism across Europe called for the strengthening of existing structures within the Schengen area.
“Controls across Schengen areas, which previously did not exist, have already been introduced. One proposal now includes a similar structure to that of the FBI in the United States to ensure that terrorists do not abuse the Schengen area. It’s in Malta’s interests that Schengen is protected because this makes it easier for tourists to reach Malta.”
Dr Sant said that the European Commission was strengthening its arguments in favour of tax harmonisation across all EU states.
“It’s in the interests of member states like Malta to maintain their sovereignty over taxation. What’s good for large countries like Germany and France is not necessarily in the interests of member states on the periphery of Europe. One-size-fits all policies are unfair on matters of taxation for these small countries.”
Dr Sant said that the European economy had picked up to pre-2008 levels and unemployment was being tackled. Nonetheless precarious work was on the increase, citizens were afraid of immigration and terrorism and populism was on the rise across Europe.
“Divergencies between different regions in Europe are widening further. These divergencies must be addressed because in certain regions, including in east Germany, generations of young people are feeling emarginalised.”
Dr Sant said the euro had to be strengthened, pointing out that it still lacked all certain structures.
“The problem is that a federal system is being proposed to strengthen the euro. This automatically means that member states will lose their sovereignty in this field.”
Dr Sant said Malta had to follow developments in the negotiations between the EU and the UK on Brexit.
“The UK is the second largest contributor to the EU budget, after Germany. As a nation we must analyse the positive and less positive effects of Brexit. We must reflect on the effects on investments in Malta, on students studying in the UK and on Maltese and Gozitan pensioners after Brexit.”
Dr Sant said Europe had to take into account new international developments including the new Trump American policy versus Europe, instability sources created with the post Gaddafi geo-political void, the phenomenon of immigration across central and east Mediterranean, the strategic competition between the EU and Russia and relations with Turkey.
“All these factors will influence and determine the future of Europe”, Dr Sant said.