The Head of the Maltese S&D Delegation at the European Parliament said that the agreement with Greece cannot and will not work. Economically, technically and administratively it will make the matters worse, he said.
Dr Sant was addressing the ECON committee during an exchange of views with Pierre Gramegna, Luxembourg’s Minister of Finance and ECOFIN President under the Luxembourg Presidency. Dr. Sant said that most financial analysts are saying it, foremost amongst which is the International Monetary Fund.
Dr Sant said that politically the agreement with Greece can best be compared not to Versailles historically but to the settlement of the Second Opium War between the European powers and China. Yet the settlement is being backed and rammed through by Greece`s partners.
Dr Sant said that admittedly the Greek government committed grave strategy mistakes in the conduct of negotiations. ‘But don't you think that now the problem of trust has shifted from Greece to its partners?’ asked Dr Sant.
Dr Sant asked whether the European partners of Greece understood the economic implications of the conditions they have imposed. ‘If they do not understand this, they cannot be trusted. If they do understand, why did they impose it, knowing that politically it will fail? asked Dr.Sant.
In this context, Dr Sant asked Mr Gramegna whether he proposes to undertake any initiative, within the European Union and outside it, to counter the mistakes and instabilities that are bound to arise around the EU brand.
Reacting to Dr Sant’s comments, Pierre Gramegna said that trust is a key point in the Greece discussion. ‘How much better can you show trust, other then by extending a loan of €80 billion to a country to which you have already lent €240 billion? To say that there is a reverse question of trust you need to have a lot of imagination.’ said Gramegna.
"Show me a place in history, a country who like the eighteen countries here, lent so much money to someone who has problems. I don’t think that the question of trust has shifted and that there is no trust in Europe. What everybody agreed on is that the past and present governments of Greece have not been able to deliver and implement. That is why the programs are not working. If you have solidarity that played out as it has and lent that much money and you know that there is a debt restructuring coming – to have the courage to give a 3rd package of €85 billion, for me that is a sign of trust.
"Let’s not forget, all of us have to go back to our governments and say we are going to help again the weakest of all of us. That is not easy in countries that they have been themselves in programms. They are committed to lend additional money to Greece although they are still in a programm themselves. If that is not a sign of solidarity!" said Mr. Gramegna.