In the wake of the latest episode of the Greek crisis saga, expect an increase in exhortations for new structures to be set up in the euro zone, so as to bring member states closer to each other in the management of their national economies. For instance, while the need for greater convergence in economic management is being proclaimed, calls will be made for taxation policies in member states to be designed on similar lines.

Malta needs to be extremely wary of this development. As of now, such proposals go against our national interest and that of the smaller economies. A fundamental problem of the eurozone is that despite the rhetoric, convergence is not happening between the stronger economies and the rest of the pack. To the contrary, economic divergences have been increasing.

Primarily, there needs to emerge a convergence between the economic levels attained by the countries involved. It is meaningless to simply coordinate their economic policies by positioning them all in the same direction. Such an exercise would result in confirming the weak in their weakness while reinforcing the superiority of the strong.

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Investments

Finance minister Scicluna did well to warn about the need to treat foreign direct investment with great care and attention. Many still do not understand how difficult it is to convince a “good” foreign investor  to set up shop on the island – meaning an investor who has the funds plus a serious project with business and job potential.

We have come to confuse financial services with foreign direct investment. In financial services, funds are just parked here and they can migrate elsewhere at any moment. Investment in fixed assets, no matter what they are, necessarily gets tied to the Maltese situation for a relatively long period.

It could easily be scared away, especially if investors are unsure about how well they will be treated.

As a democracy, it is natural that in Malta queries and controversies erupt about ongoing developments. Still, all of us need to act responsibly when new proposals for foreign direct invesment come on line.

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Libris

Visiting Libris for the last time, I felt invaded by nostalgia. It closed for business last Friday, its days as one of Brussels’ leading bookstores well and truly over. My  memories of the shop go back to the early seventies of the previous century. Initially at one address on the Toison d’Or avenue, later further down the road, and in recent years even further down and going into the Espace Louise gallery.

I guess that like most other points of sale for books all over Europe, Libris had been struggling financially for quite a while. It always carried a wide range of books in most categories and what it did not have in stock, it got for you. I once ordered there Braudel’s masterpiece on the Mediterranean world when Spain was the dominant power.

Ceremonially, I bought my last book at Libris, one of the few that were still waiting on the stacks (carrying a 40 per cent discount).