By Martin Banks - 24th January 2012
Santer's little helpers have dragged him out of retirement
Martin Callanan
Some MEPs have reacted with incredulity to news that the new head of the European financial stability facility's (EFSF) first-loss insurance scheme will be Jacques Santer.
Santer, from Luxembourg, was head of the European commission when it collapsed in 1999 amid a corruption scandal.
He and the rest of his commission were forced to resign because of alleged financial malpractice.
The appointment of Santer to head up the EFSF's new special purpose investment vehicle was announced by its managing director Klaus Regling.
The EFSF, a temporary rescue fund which will continue operating until mid-2013, was created last year to raise public and private investment from outside the EU to bolster the eurozone economy.
It is believed Santer will be able to buy and sell bonds to finance sovereign debt in the eurozone. Currently the fund is estimated to already have €60bn in its coffers.
His surprise appointment on Monday came as eurozone ministers reached agreement on the voting rights in the European stability mechanism.
Santer was Luxembourg PM from 1984 to 1995 and an MEP from 1999 to 2004.He is thought to have been in semi-retirement in recent years.
His appointment has sparked criticism in some quarters, with ECR leader Martin Callanan saying, "The return of Santer to head the permanent bailout fund's leverage vehicle, is akin to putting Dracula in charge of the blood bank.
"Surely the ESM needs somebody who will project an air of capability and calm during these tough times.
"Of all the expertise in Europe, they chose a man whose name is synonymous with malpractice and incompetence. What next, Bernie Madoff for budgets commissioner and Fred Goodwin as senior economic adviser?
"Santer's little helpers have dragged him out of retirement to give him another cushy EU job."
UKIP leader Nigel Farage said, "When I first heard this news I thought it was an April Fool joke. Taxpayers of the EU are being taken for fools by this latest move. It just shows, the EU does not care one iota about either public opinion or financial corruption."
Elsewhere, his appointment was branded an "unbelievable joke" by UKIP MEP Marta Andreasen.
The economic and monetary affairs committee member said, "I'm sure that many, many people will be choking on their coffees today at the news that a disgraced former EU commissioner, who was forced to step down with his whole team of fellow commissioners because of accusations of corruption, fraud and nepotism, is now to be put in charge of this new multi-billion fund.
"This move shows, in glorious technicolour, the utter contempt from those running the EU towards the public they claim to serve."
Further UKIP comment came from EFD co-chair Nigel Farage, who said that Santer's appointment to the special purpose investment vehicle (SPIV) was "very appropriate as a SPIV is a petty criminal who sells black market goods at knock down prices".
Oxford dictionary definition
Spiv / noun / British informal
A man, typically a flashy dresser, who makes a living by disreputable dealings.
