Europe is shaping the world in its image. This is the opinion of Mark Leonard, an influential writer on global issues.
In his book entitled Why Europe Will Run The 21st Century, Mr Leonard states that the European economy is robust enough to finance the quality of life of Europeans. The Swedish welfare state inspires the Stockholm Consensus, wherein economic systems are being remodelled while at the same time keeping intact the European social model. Such a model contrasts with neo-liberalism inspired by Washington.
As Mr Leonard puts it, "low levels of inequality allow Europeans to save on crime and prison; energy-efficient economies protect them from hikes in oil prices; the social contract gives people leisure and a helping hand back into work if they lose their jobs; while the European single market and the euro will allow European countries to benefit from economies of scale in a global market without giving up on the adaptability and dynamism that come from being small".
As we all know, Europe is currently facing a divide between those who want to adopt an Anglo-Saxon model, which gives priority to market-driven reforms and those who want to safeguard Europe's social model. Mr Leonard's analysis offers a realistic path for those who want to safeguard the latter.
As I see it, the European Union should be a model of economic, social and environmental sustainability. To the contrary of the United States, which acts as a neo-liberal and unilateralist bully, the European Union should cooperate with other blocs and nation states and encourage them to adopt models characterised by sustainability, social justice, democratisation, guarantee of civil rights and in which civil society and local characteristics would have an important role to play. Such cooperation can be enhanced if the EU gives fairer market access to such blocs and countries.
Malta would have much to gain if it is inspired by the Stockholm model. The welfare state needs to be safeguarded and made as sustainable as possible. Progressive taxation - an important pillar of a just welfare state - should not be seen as a taboo. At the same time shifts should be made from taxing labour to taxing environmental harm and speculation of property. In the case of the latter, one should note that 25 per cent of properties are vacant in our micro-state! Can we keep permitting such waste of resources?
Women should be encouraged to seek gainful employment. Malta currently has the lowest percentage of female workers in Europe and reforms which make employment more worker-friendly, such as the introduction of affordable day-care centres, should be introduced.
The quality of education should be given due importance, especially since Malta currently has the highest illiteracy and the lowest amount of post-secondary students in the European Union. A major reform in this regard would be the gradual abolition of streaming, which is producing thousands of students with low skills and no qualifications and which is reproducing existing social stratification. Due to the latter, the university keeps being underrepresented by working class students.
Another important factor is environmental sustainability. This should not be considered to be in conflict with economic growth. Energy is a case in point. The fact that Malta is not tapping its renewable energy resources beggars belief when we have so much sun and wind for free. By investing in alternative energy new jobs can be created and Malta can reduce its dependency on oil, the price of which will definitely keep increasing.
Last but not least, the above factors should be set within a framework inspired by the values of tolerance and liberty. In a global society characterised by a plurality of identities, this is ever more important, especially in view of the rise of the extreme right, which, apart from being racist and xenophobic, also wants to impose reactionary values where the state would be using discriminatory and authoritarian policies on various social groups and categories. Progressive politics and education have a vital role to play to counter the menace of the far right.
With a higher level of education, more skilled workers and by giving due importance to environmental sustainability, Malta can attract more productive investment. And with more productive labour, Malta would be financing a more sustainable welfare state.