The European peoples want a Europe of nations, they do not want a federal solution, former Prime Minister Alfred Sant told the European Parliament. The Labour MEP said thatthe challenge ahead is to respect what the peoples of Europe want, while satisfying the requirements of an effective monetary union between democratic nations.This challenge can only be met by developing confederal structures.

Alfred Sant said that in recent years, the euro zone experienced a recession that exposed its deficient structures. Arrangements were introduced to prop it up and keep it competitive in a globalised framework. Dr. Sant said that interventions by the European Central Bank that probably go beyond the Bank’s legal remit saved the monetary union from paralysis. Ironically, the unelected leaders of the Bank have called for political developments that would make the monetary union more fit for purpose. 

Sant explained that within the monetary union, we lack a central fiscal mechanism that balances divergences between centre and periphery through transfers from center to periphery.Many among us here prefer to improve an economic governance that props the already existing management structures.

Dr Sant reminded the European Parliament that the European Convention of some twelve years ago was intended to establish a constitution for Europe.In the event, it was rejected in the countries of Europe which had led moves towards ever closer union. Meanwhile, in the absence of an economic union, a monetary union had been established whichcarried wide divergencies between its nation state components.