Issue link: https://maltatoday.uberflip.com/i/467065
maltatoday, SUNDAY, 22 FEBRUARY 2015 15 make more sense to let it implode… does he agree? "Well, I'm called a 'sceptic', but… the point is, economically the struc- ture is not in good shape. In Brussels it is considered blasphemy to say such things. People there accept it as a fact of life, not to be changed. So everything's got to be done to make it work. But the problem remains. We all accept the existence of eco- nomic divergences, at least as a chal- lenge. What are the tools to over- come them? To date – and you can call me a sceptic as much as you like – I don't believe the existing props are sufficient, nor the proposals for investment. I hope I'm wrong." What does he propose instead? "I think we have to talk about a confederal solution. There has to be a central fund to compensate for the disequilibrium that has been cre- ated… but it must keep away from any kind of federal structure. This goes back to the debates of the 1960s and 1970s, to be frank: how to have a European monetary union without the centre sucking up resources from the periphery. The only way it can be done is by means of some sort of tool that can retransfer resources back to the periphery. But that is politi- cally problematic. In a word, it's not popular." Nor is it particularly fair, he hints, as some countries have benefitted more than others by the strategy to date. "Basically, the way things are at the moment, the largest economies – namely Germany – are having the best of both worlds. Germany has very low interest rates on its bor- rowings; it has the same internal exchange rate in the eurozone as with all other countries. It can still export, even when it's in a hard posi- tion. And when the euro is low, it has a competitive advantage that is not justified by its economic profile. Year after year, Germany had a surplus on its balance of payments. Sooner or later, the question will have to be asked: 'Cui bono'? Who benefits from all this? And that is quite explo- sive. The Greek debt crisis has placed this question to the fore once more. We have not reached a point where it's being said openly. But the ques- tion will be asked…" Meanwhile, questions have also been asked about his own stand in the current impasse between Russia and the EU over Ukraine. Sant surprised many by abstaining in the recent vote to ratify Ukraine's association agreement with the EU. Some have found his subsequent explanation – i.e., that it would be 'imprudent' to support the Ukrainian agreement at this time – to raise more questions than it answered. What did he mean, exactly? "It's a question of going back to basics. My problem with this issue is that on both sides – Russia on one hand, the EU on the other – are in bad faith, and have been in bad faith since the beginning. And when two entities are in bad faith, I will not support one or the other. That's why I abstained. The problem is this, as far as I can tell. It goes back to the 'soft power' model: the EU has not managed its soft power well. It has seen it as another tool for expansion- ism. It felt happy with that approach; but you also have to take into ac- count the realities. The reality is that Russia has a presence in Europe; it has always had. And it needs its own space. Now whether that space is hegemonic or not, that's a different point. But Russia has to have its own space. You have to understand the historical context underpinning all this." The original Russia nation, he points out, actually originated in Kiev. "Then they expanded towards Moscow. There is a kind of symbiosis there that you can't just neglect. This is Europe, not the Wild West. So ef- fectively, when you step into that region, you have to bear in mind the historical context. Many of Russia's classic writers – Gogol, to mention one – were Ukrainians. It's like tak- ing about Lombardia and Italy. Yet the EU, if you please, developed an association agreement with Ukraine, without having been politically on the ball about it. They were suddenly surprised when the Russians started objecting. Now: whether Russia was right to object or not, that depends on which perspective you look at. But if you can justify expansionism on the part of the EU, through the at- tractiveness of the EU's soft power… which is attractive… you have to also appreciate that the Russians have their own perspective." Sant admits that this reasoning doesn't go down well in Europe, least of all among countries like Latvia, Lithuania, etc. "But these are the realities. You can't just move into a room, and pretend nothing has changed even though you've taken over the room. I refuse to participate in that sort of thing, because both sides are in bad faith." Interview Former Prime Minister (now MEP) ALFRED SANT has criticised the EU's approach to the eurozone crisis, and defied expectations by failing to support Ukraine's association agreement with the EU. Sceptical as always? Yes, if he says so himself but… PHOTOGRAPHY BY RAY ATTARD