The recent EU accord might have been about the future of the euro while the last minute deal in Durban might have been all about saving the planet on climate issues, but at day’s end in both cases the results achieved were the net result of sheer political decisions taken
On the local front, the maturity and level-headedness shown by the Opposition leader in supporting government’s EU Summit stand on the euro not only gave further proof that the PL invariably rises to the occasion, but also that it always puts the national interest first.
One sincerely hopes that if there might be a change in government in Malta when the next elections fall due, the PN – under Lawrence Gonzi or a would-be successor of his – will show the same sensible and mature approach, rather than deviating completely from the constructive paths that the PL has invariably pursued whenever issues of truly national and global importance came to the boil.
It must have been a rare occasion for the Prime Minister to actually get round to thanking the Opposition publicly for the support it expressed on this issue. But the fact that he did, merely goes on to prove that even government itself felt compelled to acknowledge the positive stance and mature approach adopted at our end. That the PM was earlier on, less publicly thankful for our support on the Libya issue can be ‘understood’ without being accepted, since the primary objective of certain elements within the PN then, was primarily that of rubbishing the PL for domestic political purposes in the hope of scoring some points and reviving the PN’s own flagging spirits.
But as an eternal optimist, I prefer to look ahead rather than to get bogged down in recriminations and finger-pointing accusations.
As some have been quick to point out, the accord in Europe on the new fiscal deal reached offers much hope but no guarantees, but compared and contrasted to the failure that could have ensued had the euro deal fallen through, there is far more to praise than criticise in the accord struck.
Whether this agreement will pave the way for a German Europe rather than a more European Germany is something I have speculated about since last June when I visited Berlin as part of a German-Maltese Parliamentary Friendship Group delegation… but then that is real politik.
If anyone thinks that any country other than Germany can and or will really call the shots in the EU simply because on paper all countries are just as equal as one another, then one must be living in cuckoo land.
I think that the main issue that we should all be addressing is whether the whole accord will work or not.
That is what should interest us most, if we really believe in seeing the euro project survive.
March will remain a pivotal date by when we should see whether the new treaty will come into force, as I sincerely hope that it will.
Although the phrase ‘fiscal union’ has been used extensively in recent weeks, I feel more comfortable with the new fiscal concept term being used.
It is more reassuring, fitting and appropriate – given the resultant circumstances.
What still needs to be seen will be whether there will actually be more loans to support countries that cannot borrow on the open markets as well as whether the ECB will continue to pump money into the European banking system.
Even though some were quick to dismiss the IMF role in all this as a symptom of US engagement in the process, particularly given the US economic exposure to goings on in Europe and the Presidential elections looming on the horizon, on the other hand I feel that the US-led or rather US-dominated/influenced IMF might be in a better position to help the EU itself beef up its own funds, even by way of additional money to EU nation states via the IMF itself.
Certain pessimists think that the EU has merely committed itself to long term austerity, while our Prime Minister tended to be somewhat over optimistic when notwithstanding his wrong spending priorities – the new Parliament building, certain avoidable mega projects etc. – he boasted that Malta already meets the golden rule’s criteria. On the other hand that he should commit himself a priori to amend the Constitution on this matter at this early stage without first waiting to see how things will actually develop in Europe as well as when the March deadline is still some four months away, smacked more of impulsiveness than level-headed thinking.
In the coming months we shall see whether economic growth will materialise regardless of the tough fiscal measures agreed upon, while on the other hand the survival of the euro itself would have been instantly jeopardised had fiscal prudence and discipline not been ingrained in the freshly-minted accord – as it was indeed.
It is not for me to pass judgement on another friendly nation, Britain, but while some have claimed that it might be banking on a future failure of the euro, the general feeling – at least so far – is that Cameron seemed to have had his own party’s and nationalistic interests much more at heart than anything else. Even if his ‘bold’ decision has reportedly caused alarm among companies fearful of Britain’s potential long-term loss of influence in Europe.
Arguably one of the best pieces on David Cameron’s EU treaty veto was recently carried in The Observer by way of a blow by blow Q&A in which The Observer writers analysed in depth the political and financial implications of the British PM’s refusal to fall in line with the rest of Europe.
I know that some may argue that the decisions taken at the recent EU summit might have diluted the sovereign power of the participating member states, but it was almost a given and an inevitable decision that the new fiscal compact would seek to limit the member states’ future budget deficits, while as from now on they have no choice but to begin to co-ordinate much more closely on all areas of economic policy.
I am also inclined to agree that the recent EU accord can impact in a big way on the manner in which political parties in Europe will as of now shape their future policies – particularly in the fiscal sector.
There is one certainty of which we should be proud of as Maltese.
That as an EU member state for the last eight years or so, staying on the sidelines would have been a bad option, even if we ultimately chose to go with the flow as inspired and triggered by Germany itself and to a far lesser degree, by France.
Failure to do so would have meant that rather than forming part of the weaker component of a two-speed Europe we would have ended out on a limb, particularly since the alliance between non-eurozone countries and the UK simply failed to materialise.
As committed Europeans we need to ensure that not only the eurozone but ideally all EU member states will ensure that a strong euro will remain the centre of policy and decision making in the EU itself.
Which brings us to Durban.
Politics was at the root of decisions taken there too.
Whether the end result will prove to be a fudge or not still has to be seen, but in all fairness, I believe that even here the EU has been instrumental in pushing hard for what it called a roadmap to a new, legally binding treaty. Even though it met stiff resistance in the process.
The fact that there was an agreement to work towards a future treaty that would require all countries to reduce emissions that contribute to global warming does not necessarily mean that such a treaty will be actually reached.
But at least there was a commitment to renew the Kyoto Protocol for several years while beginning the process to start replacing it with something that might treat ALL nations on a more equal footing.
My biggest concern about Durban is that while the negotiating process has been kept alive, arguably on life support, I still need to be convinced whether it will have any significant impact on climate change itself.
No wonder the director of policy of the so-called Union of Concerned Scientists instantly remarked that the decisions adopted there fall well short of what is needed.
On the local front, I found it most rewarding to engage in an intensive foreign affairs committee meeting on Libya following a presentation by the Foreign Minister as well as to participate in a key session of the Church Environment Commission and Malta Water Association conference at the Curia on water which I described as a strategic resource.
As predicted, the PL’s humble contributions to these two events were conveniently ignored by certain sections of the media, as part of the escalating gatekeeping, and Castille triggered game plan of rendering us as invisible as possible… except when any of us might choose to put a foot wrong!
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Leo Brincat is the Shadow Minister for the Environment, Sustainable Development & Climate Change