Interview with Martin Callanan, chairman, ECR group
“Greece’s membership of the euro is unsustainable”
By Gaspard Sebag | Friday 27 January 2012
British Conservative MEP Martin Callanan took over the leadership of the European Conservatives and Reformists group in the European Parliament in a vote in December 2011, replacing Jan Zahradil (Czech Republic). He and his group plead for “an alternate vision of Europe," other than federalism. Furthermore, Callanan argues the fiscal compact currently under discussion is “completely pointless” and undemocratic. He feels that the focus should rather be on downsizing of the eurozone to exit the crisis.
What is your goal as ECR group leader?
The main goal, under my leadership, will be to continue to position the group as a voice of opposition to the prevailing federalist consensus. There is an alternative vision of Europe.
What political support will you draw upon in the Parliament?
We work with other groups on issues we agree upon. Most of the time we work with either the EPP or ALDE, depending on the issue.
Do you decide this case by case?
Of course. We’re not going to agree with them on the fiscal compact, for example, but we may well agree with them on other issues.
About the fiscal compact…
It’s completely pointless.
So you agree with the majority in the EP?
Well, yes, but they will go on with it whereas we will continue to point out the obvious flaws of it and emphasise that this is not going to make the slightest difference to the crisis. The fiscal compact
may well solve the next crisis by the time it is implemented and if everyone sticks to the provisiosn but it certainly won’t solve the current crisis. And, worse, it has distracted attention from the real and important steps that leaders could be taking to resolve the current crisis.
What would these these steps be?
They need to reduce the size of the eurozone. I think this is pretty much inevitable now.
So do you think it is necessary to kick out a few member states?
Yes.
Which ones?
Certainly Greece, possibly Portugal as well. But that will probably become clearer in the next few weeks. Certainly there is no question to me that Greece’s membership of the euro is unsustainable.
What core size is sustainable for the eurozone?
It’s very difficult to say. But unless there is going to be either large scale fiscal transfers or massive structural reforms in some of the Southern economies in order to address their lack of competitiveness against the Northern states of Europe I don’t see that they can stay in the euro for the long term.
One diplomat said that the fiscal compact will render Keynesianism illegal. Do you see that as a problem?
If I were a centre-left politician I don’t see any way that I could sign up to this. As this commentator said this is pretty much rendering Keynesianism illegal because every country will have to have a balanced budget. I think it is a good thing as a Conservative. I think there are also democratic concerns here. I might not agree with Socialist solutions or deficit spending but I think electorates have the right to vote for it in a democracy. Effectively that is rendering that course of action illegal. One wonders what the point of elections will be in those countries for the years to come.
What do you make of the new emphasis on growth, veering away from a single-minded focus on austerity?
Are we going to scrap a whole load of European legislations? Are we going to get rid of some of the job-destroying social legislation passed in the last few years? Are we going to complete the single market? Are we going to move forward radically in terms of the Services Directive? Things like that might have a chance of actually delivering growth rather than stating in a treaty that we are in favour of it.
What are the main problems of the European Parliament at the moment?
The Parliament should stick to what it was set up to do, which is to act as a balance and a check on the Commission and act as a properly revising chamber alongside the Commission. If we stick to that role we might be taken a bit more seriously instead of trying to elevate ourselves to what is properly the ambit of national leaders.
What about the EP’s popular legitimacy?
There is a great problem with the legitimacy of the Parliament compared with the very low turnout at European elections. People don’t regard it as a body that they need to take seriously.
What can be done?
It is very difficult because there is no proper demos at European level, people do not regard themselves as part of one European democracy that the Parliament is the legitimate voice of. It’s effectively a succession of 27 national elections. Perhaps we should play along with it, accept the reality of it and devolve more powers back to member states.
Can you give us your thoughts on the debate over the next multiannual financial framework?
We’re very much in favour of spending less at the European level. At a time when member states are cutting back, in some cases very severely, it makes no sense whatsoever for us to be talking about increasing spending at European level. We should be helping to contribute to the debt crisis by cutting back on our own expenditure, not spending money on a glossy Visitors’ Centre or a House of European History.
But those projects are peanuts compared to policies such as the CAP, where billions are engaged…
As Ronald Reagan memorably said: A million here and a million there and pretty soon you’re talking real money. Yes we should be saving money on regional programmes and the CAP but we should also not be going to Strasbourg to save €200 million a year.
Where is the European added value best shown?
In the single market.
What do you make of European Commission President José Manuel Barroso's track record?
He’s kind of dragged around by different forces. He needs to be a bit more assertive in my view and chart the way forward.
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