Issue link: https://maltatoday.uberflip.com/i/1035530
maltatoday | WEDNESDAY • 3 OCTOBER 2018 6 NEWS ANALYSIS MALTESE voters are unlikely to vote along European lines. But international alignments may have a bearing on the ability of Maltese politicians to influence counterparts on issues like taxation and immi- gration as well as in enhancing their standing abroad. In co-signing an appeal against the rise of the far- right and in defence of Eu- ropean values, along leading European centrist and liberal politicians, Muscat has sent a strong message that he is still respected in European circles despite the increased focus on Malta's opaque fi- nancial system and increased scrutiny on its institutions in the aftermath of the murder of journalist Daphne Caruana Galizia. The op-ed appeared in the Times, Guardian, El País and Libération and saw the Mal- tese Prime Minister Joseph Muscat signing a common appeal along ALDE chief Guy Verhofstadt, Christophe Cas- taner, the leader of Emmanuel Macron's La République En Marche movement, former Italian PM Matteo Renzi, Spain's Ciudadanos leader Al- bert Rivera, former Romanian PM Dacian Ciolo, Belgium's MR politician Olivier Chas- tel and Dutch Democrats 66 leader Alexander Pechtold. The message is that despite taking flak, Muscat is still be seen as a reliable interlocu- tor in the European political mainstream. Muscat's inter- national posturing has put him back on the map of mov- ers and shakers, and possi- bly on the waiting list for an official EU appointment. By putting his name on a mani- festo before other more re- luctant centre-left leaders, he may be maximising any future dividend from his investment even if his hopes may hit a snag if the Macron project of a European version of En Marche fails to take off. This will not extinguish in- ternational scrutiny, which will probably resurface on the one year anniversary of Caruana Galizia's death. The heavy-handed way in which the makeshift shrine in front of the law courts was cleaned up reflects a certain nerv- ousness in the run-up to this anniversary, which in itself raises question on how deep is Muscat's commitment to so-called European values. Curiously, unlike many oth- ers in his party who react with myopic nationalism at any criticism made from outsid- ers, the letter which Muscat co-signed clearly affirms "the committed adherence to the rule of law and democratic institutions" in the face "of appeals to muzzle justice and opposition", in countries like Italy and Hungary. Only last May Verhofstadt, one of the authors of the op-ed signed by Muscat, had decreed Malta's "corrupt political system" as "not European". Still the need for interna- tional legitimacy may also condition Muscat's approach to local politics in a more lib- eral direction. Muscat has already changed his party's approach to immi- gration from a hawkish one to one based on diplomacy and collective responsibilities. While this reflects changed economic realities, this ap- proach has given Muscat the opportunity to work closely with other European leaders and thus gain their personal trust. Muscat's way of resolving contradictions between Eu- ropean expectations and the sentiments of some of his traditional voters may well be through balancing acts, like that of impounding NGO vessels in the harbour to ap- pease immigration hawks. Yet in this he is also in line with fellow centrist leaders who posture themselves as the en- emies of the far-right while proposing their own version of fortress Europe. A farewell to socialism? As the only current social- ist leader to sign the declara- tion, Muscat may have taken a risk of breaking ranks with historical allies in the name of an alliance which includes competitors of other socialist parties like the centre-right Ciudadanos in Spain. In many ways Muscat's in- ternational choices seem to reflect his transformation of the Maltese Labour Party into a pro-business alliance of "moderates and progressives." Moreover, it is unclear wheth- er the alliance will develop as a more liberal alternative to the EPP or as a broad progres- sive alliance united by core European values, one which may include a diversity of pol- iticians ranging from French President Macron to left-wing Greek Prime Minister Alexis Tsipras. Muscat's international gam- ble comes with risks. For to do this he is hobnobbing with 'europeanists' who may favour increased tax harmo- nisation which could harm Malta's competitive advan- tages in the sector. The letter suggested that Joseph Muscat could back the demands of bigger players in the field of digital taxation: "We are just at the beginning of the pro- cess – but we know the only possible solution is a Euro- pean one," a hint at a harmo- nised tax. Muscat's sovereignist paradox Muscat who was once ada- mantly against EU member- ship which was perceived as a threat to Maltese sovereignty by his party has now co- signed an appeal which calls for more Europe. "Instead of a divided and weakened Europe which is at the mercy of world powers, we want a sovereign Europe that acts robustly at all times where the action of isolated countries is unyielding – es- pecially when it comes to eco- nomic and monetary policy, security and defence, social policy, ecological and agricul- tural transition, immigration and integration, plus digital change". Muscat is also defying the Labour Party's "sovereignist" tradition which remains alive and kicking even in Mus- cat's defiance to the Euro- pean commission in matters like the Individual Investor Programme. In fact, the main difference between Muscat and the Ital- ian populists may well be that while the latter are defying deficit rules, Muscat has cre- ated a new source of revenue by selling European citizen- ship. Significantly he has coupled this revenue with an open market in foreign labour and property, which increased Malta's tax revenue. This may well be another case where the outrage and zeal found among MEPs contrasts with the complacency of the EU commission and European council. In the end Muscat not only failed to scrap the IIP but has declared his intention to expand it. The federalist quandary Muscat's hobnobbing with Europeanists who may ques- tion Malta's taxation regime must be seen in the context How Muscat has worked his way back James Debono looks into why Joseph Muscat was the only acting socialist leader to sign an op-ed along with the leader of En Marche, French President Emmanuel Macron, calling for more Europe in the face of the challenge posed by the far right Joseph Muscat and Emmanuel Macron at the EU Council meeting on migration at the end of June