Issue link: https://maltatoday.uberflip.com/i/1416377
8 maltatoday | SUNDAY • 3 OCTOBER 2021 INTERVIEW 'The European Union is not a bank' The success of the German SPD in last week's elections gave new impetus to European so- cial democracy. What does a centre-left Chancellor mean for Europe at this moment? With the Stability and Growth Pact coming back into force in 2023... would Olaf Scholz take a 'kinder' view of fiscal policy: by supporting the need to tolerate deficits, in EU states hard-hit by the Covid-19 pandemic? First of all, maybe it is important to understand where we are right now. Europe's response to the Cov- id-19 pandemic was very different to its response to the 2008 financial crisis. And the main difference is that – unlike the austerity we saw in the case of the 2008 crisis - Eu- ropean governments have today decided to put people at the centre of their response, with a solidari- ty-based Recovery Plan. Germany had a strong role in this agreement; along with other countries, such as Spain, Italy and France. In fact, this new, solidari- ty-based approach was pushed by finance minister [and S&D's can- didate for Chancellor] Olof Scholz within the German government; and this is very important, be- cause it can send a clear signal of how we can work within the Euro- pean Union, under a new govern- ment led by the Social Democrats. Maybe it is too early to say whether the fiscal rules them- selves will change or not; the dis- cussion is open, as we know per- fectly well. But maybe it is a good opportunity to understand that the deficit, alone, cannot be the only instrument. We can include other issues, such as the 'golden rule' on social and environmental investment: whereby this type of investment is excluded from na- tional deficits, for example. In any case, I think there are dif- ferent ways in which a new Social Democratic government in Ger- many can influence Europe's re- sponse for the better. But it's very early to say, from now, precisely what will happen; or even who will be the minister responsible for finances in the new govern- ment. It could be someone from the Greens, or the Liberals… we shall have to wait and see. But I do think there will be a dif- ference; and that a new German government can influence the EU in a good direction. EC Voice-president Frans Tim- mermans recently sounded an ominous, oft-heard warning on climate change: 'our children will be fighting over water'. But what are the S&D's actual priorities when it comes to cli- mate change, and what does it expect European governments to do within the next years? Of course, it is a top priority: because at this moment, the fight against climate change is not an option. It is an obligation. We have no choice: it is necessary if we want to safeguard this planet for future generations. The ques- tion is, how will we do it? We already have a clear commit- ment, in the form of the Climate Policy. But this Climate Policy also needs to have a social dimension. This is very, very important. It is necessary to make a strong trans- formation in our economies, in our industry, in all countries of the European Union. And to do this, we have to think about the peo- ple who have the most needs; and who will be impacted the most. Some of these transformations will bring about changes in, for example, the labour market; or new measures to support renew- able energy, or energy-efficient buildings. And some people will obviously face more problems than others, when adapting to these new realities. That concern is also true of countries, not just individuals. A small island nation like Mal- ta – which relies heavily on imports – may be dispropor- tionately affected by (among others) the proposed EU meas- ures to curb shipping emis- sions, for instance… That is the question. What is the right way to do this? Clearly, we need to build a common position: because there are different per- spectives, depending not only on the countries concerned – with their unique geographical cir- cumstances – but also on individ- ual sectors. What will happen, for example, in the transport sector? The aviation sector? And in vari- ous different industries? So I think we need to find a com- mon position, so that the neces- sary transformation is achieved: but supported by a strong social fund. Migration has also been an important subject for the S&D in this external meeting. The Maltese government is often criticised, justifiably, over its attitude to migrants; during COVID-19 it financed private boats to keep rescued migrants out of Maltese waters for weeks on end. Does the S&D condemn such games on human rights; or does it agree with the Maltese government's argument that we are really suffering from a lack of European solidarity when it comes to the rescue and relocation of asylum seekers? I agree that there is not enough solidarity, at this moment, from Europe on the issue of immigra- tion. Because immigration is a situation common to all of Eu- rope; it's not a problem only for some border countries like Malta, Italy, Greece or Spain. That's not Socialist MEPs are currently in Malta for an external conference entitled 'United For A More Social Europe'. But IRATXE GARCIA- PEREZ, president of the S&D's Parliamentary group, argues that social justice cannot be achieved, unless we view the EU as a 'political' – as opposed to 'economic' – project Raphael Vassallo rvassallo@mediatoday.com.mt JAMES BIANCHI