Monti makes pitch for a closer Europe, Mandelson warns against euroscepticism

It was not southern Europe - predominantly Greece by association - that led Europe into the economic crisis but it was Germany and France with the complicity of Italy, according to former Italian premier Mario Monti.

According to Monti, the economic downturn goes back to 2003 when Germany and France were allowed to breach the stability and growth pact and Europe's governments sought after wriggling free of the pact's constraints.

Monti criticised European governments who protested against providing Eurostat with more "intrusive power" to check public funds.

Together with former EU Commissioner Lord Peter Mandelson, Monti is in Malta taking part in the business roundtable organised by The Economist, discussing measures to invigorate investment and growth.

Monti said that in order for Europe to move ahead, growth was required and member states in the south of Europe have made "a huge progress".

"The North must come to realise that growth cannot come in isolation... the North must cooperate with the South," he said.

As the UK stands its grounds against further European integration, Monti suggested that the country should adopt the "high moral ground" instead of curtailing all significant aspects of European integration.

"The UK should push for a serious reform of the Single Market, competitiveness... But this challenge has to come from London," he said, adding that the UK would not be isolated but rather attract powerful allies.

The United Kingdom would also regain its decency, Monti quipped.

Monti, president of the Bocconi University, described the forthcoming European elections as a test to the bridge between the EU and its citizens. "It is also a time to reflect on democracy as many of us are plagued by short-termism. Under constant pressure by the media, politics at national level looks focuses on the short-term and which issue lends itself to be mostly criticised... in this case integration."

He suggested that during Malta's EU presidency in 2017, the Economist should hold another roundtable in a bid to bridge the UK. The proposed referendum on the UK's membership of the European Union will be held that year.

Lord Mandelson favours political and fiscal union

Former EU Commissioner Lord Peter Mandelson has questioned the reluctance of EU leaders to gather round a table and discuss a united political and fiscal union.

"National identities and national allegiances have remained strong within the EU. I don't condemn it and I point it out as a fact. But this has resulted in stronger European states like Germany who still have profound doubts on taking on board fiscal debts of weaker states," he said.

Skeptical about EU solidarity, Mandelson said he doubted how much the EP elections will help in solidarity.

"If euroscepticism, extremists do well in EP elections, it will send a very strong message of citizens' discontent and political elites will be unsure how to face it."

Mandelson said the financial crisis has shaped and polarized a lot of Europe and while the union was recovering, it is still fragile.

"What matters in 2014 and the coming years is how Europe transitions from crisis management to long-term structural reforms. Political mood is very relevant: do our leaders have a plan to follow and demonstrate to the European public," he said.