It is politics not economics that will weigh down heavily on any decision taken by eurogroup leaders on Greece’s future, Labour MEP Alfred Sant believes.

The former prime minister said the political fallout was of concern for countries like Spain and Portugal where anti-austerity parties could gain ground if Greece was allowed to get the deal it wanted.

“There is no solution that will be good for both sides simultaneously,” Dr Sant said yesterday when asked whether Greece’s exit from the euro would benefit everyone.

Eurozone countries have been wary of showing increased flexibility with Greece as this will create political ramifications in other EU countries that have had to pass through painful reforms in return for bailout money.

Dr Sant said if eurogroup members “gave in” some countries, like Spain and Portugal, could experience big political problems. But so would Greece if it accepted the conditions imposed by European partners, he added.

“If Greece gives in to the demands, the Syriza party in government will split.

The European genius has always shown Europeans have been able to fudge things

“The political fallout will be big whatever happens.”

Dr Sant was speaking to Times of Malta after unveiling his second book, Malta and the Euro, which reproduces his articles on the subject between January 2012 and February 2015. Dr Sant said the economic fallout of a Grexit – a Greek exit from the euro – would be harder to gauge. Although many argue the consequences of a Grexit can be contained because the country’s economy is relatively small, Dr Sant believes any such decision will create an image problem for the eurozone.

“But, on the other hand, if Greece accepts the terms of the bailout, social and economic conditions in the country will remain bad and could cause great political instability,” he said.

Dr Sant said everyone wanted a compromise solution but every country had its own red lines. However, he harbours hope the difficulties will be “plastered over”.

“The European genius has always shown Europeans have been able to fudge things and maybe even this time they will arrive at some form of agreement,” Dr Sant said.