Alfred Sant remains skeptical over ‘success’ of Greek agreement

Alfred Sant: the agreement with Greece ‘cannot and will not work’ • ECOFIN president insists agreeing to Greek deal was ‘biggest sign of trust’

Labour MEP Alfred Sant
Labour MEP Alfred Sant

The deal agreed to by Greece and its creditors “cannot and will not work”, Labour MEP Alfred Sant said.

According to Sant, who has always been skeptical of the terms and conditions of the bailouts given to Greece, the latest deal will make matters worse in economic, technical and administrative terms.

Addressing the ECON committee during an exchange of views with Pierre Gramegna, Luxembourg’s Minister of Finance and ECOFIN President, Sant said this view was being pushed forward by most financial analysts – including the International Monetary Fund.

“The agreement with Greece should not be compared to Versailles but to the settlement of the Second Opium War between the European powers and China. Yet the settlement is being backed and rammed through by Greece`s partners,” he said.

Sant said the Greek government committed grave strategy mistakes in the conduct of negotiations: “But don't you think that now the problem of trust has shifted from Greece to its partners?”

Sant went on to ask whether the European partners of Greece understood the economic implications of the conditions they have imposed. 

“If they do not understand this, they cannot be trusted. If they do understand, why did they impose it, knowing that politically it will fail?” he asked.

The Labour MEP called for an initiative within and outside the European Union to counter the mistakes and instabilities that are bound to arise around the EU brand.

Gramegna reiterated that trust was a key point in the Greece discussion.

“In what better way can you show trust other than by extending an €80 billion loan to a country to which you have already received €240 billion? It requires a lot of imaginsation to say there is a reversal of trust,” Gramegna replied.

Defending his European partners, Gramegna questioned which country in history ever “lent so much money to one country”.

“I don’t think that trust has shifted I don’t think trust in Europe has been lost. What has been agreed is that the past and present Greek governments have not been able to deliver on their promises and implement their programmes.”

Gramegna said this was the reason why the programmes did not work.

He insisted that agreeing to a third package worth €86 billion was a sign of trust, especially since leaders had to go back to their governments with yet another request for money lending.

“This is not easy especially in countries in programmes themselves. The biggest sign of solidarity is by countries who are committed to lending money whilst they themselves are in a programme.”