The rules of the Stability Pact of the European Union should be changed in such a way that investment costs are not calculated in a country’s deficit, and there should be a shift towards some form of central fund used as a Treasury for European investments, said MEP Alfred Sant in a public discussion held at Europe House on Friday.
MEP Sant warned about the risk of economies on social welfare expenditure if there are too many new demands on the EU budget.
“If you have the rules that continue to be implemented as they are, and there cannot be a certain deficit because of them, in order not to have a deficit it becomes imperative to reduce costs, and economies will often be done in the social expenditure”.
MEP Alfred Sant, speaking during this public discussion organised by the European Parliament Office, explained the developments in the EU’s economic and monetary policy and the proposed laws on capital markets, which he is leading the European Parliament’s work on.
He noted that the EU is lagging far behind on capital market integration, although the European Parliament has pushed for more ambition, as there is disagreement by many Member States. This is because there are countries that have well-functioning share stock exchange systems for their national interests, and other governments that fear losing control.
Asked about the EU project for a fiscal union, he expressed the view that "it is impossible to have a full fiscal union if there is no central Treasury for the EU".
As his most significant task in the European Parliament, MEP Sant singled out the law for the cyber security of banks (Digital operational resilience act - DORA), which was triggered, among other elements, by the cyber attack on a Maltese bank some years ago, in which millions were stolen.
"This is a complex and innovative law that introduces cyber defense systems for banks against the danger of attacks and theft. In this law we had total harmony between the Council and the EP, because everyone wants cyber security."
This was one of a series of events being organised by the European Parliament Office in Malta to inform and engage the public on the work of the European Parliament and of the Maltese MEPs as the current five-year term comes to an end this year. This event is part of the EP’s together.eu initiative.