Alfred Sant warns of more social unrest across Europe if workers’ rights aren’t prioritised

Labour MEP Alfred Sant has stressed the need for a small social Europe, arguing that increasing social unrest is the biggest challenge currently facing the Eurozone.

Addressing a conference on the future of the Eurozone at Europe House in Valletta, Sant called for a social Europe which cares for “workers, self-employed, pensioners and those in need of social protection”.

May’s European Parliament elections, he said, would give an indication as to what the future holds for the Eurozone. “It is clear that we need to create a social Europe based on the principles of social justice.”

The MEP pointed to the current discontent in France, which he said was the outcome of social injustices. “Those who need most social protection feel they are carrying the country’s financial burdens whilst the French government is legislating in favour of society’s upper classes.”

Sant pointed out that the protests were not being organized by traditional political parties or trade unions, but were rather a popular expression of anger to those who feel abandoned by government.

“This has sparked protests of the yellow vests who are expressing their disapproval across France hoping this provokes new social measures in favour of those in need.”

Sant called on Maltese and Gozitan citizens to “sustain their confidence in Malta’s future whilst striving for a social Europe”.

Turning to Brexit, Sant underscored the difficulty in predicting the effect of a ‘no deal’ situation from the perspective of small countries like Ireland, Holland, Malta and Belgium.

He said there were currently “two prevailing political currents” in Europe at the moment. The Labour MEP explained that Germany favoured a more federal Europe, with the same rules applying to all EU member states while others insist on the need to have a “Europe of nations”.

This concept, he said, was now attracting the like of populist movements, especially in Italy and France – both of which oppose the concept of a more federal Europe.

Tax harmonization would disadvantage small states

Sant also said that measures against tax competition across the EU would place small member states like Malta at a disadvantage when compared to larger countries like Germany and France.

Sant said there was an increasing trend in Europe to combat tax evasion by eliminating tax competition but insisted that measures against tax competition would undermine Malta’s interests.

“This is definitely not in the interest of small EU states like Ireland and Malta, who to date are in control of their sovereignty on taxation,” Sant said. “Tax competition is the best tool that small EU states like Malta can use to compensate for the disadvantages they face vis-à-vis the larger EU continental member states like Germany and France.”

The former Prime Minister said that in this regard, Malta’s biggest challenge going forward would be “reconciling itself” against money-laundering and tax evasion with the “need to maintain tax flexibility” to ensure the country remains competitive in the single market.