AD presents proposals for fighting deficit

Alternattiva Demokratika, the Green Party, yesterday presented a set of proposals to Prime Minister Lawrence Gonzi, in his capacity as Minister of Finance, on a strategy for containing the country's deficit and reducing the debt.

The targets set out in the document include the containment of current expenditure and they speak of the need to compile, monitor and report on a capital expenditure programme spanning five years.

AD presented the technical 18-page document, entitled Malta Meets Maastricht, following a press conference in front of Auberge de Castille, in Valletta.

AD chairman Harry Vassallo, accompanied by the party's European parliament elections candidate Arnold Cassola, told journalists that the European Commission has officially reprimanded the Maltese government regarding the extent to which the country's budget deficit and national debt are out of line with the targets set for Malta to enter the eurozone.

"We are presenting a document containing proposals that can assist the Ministry of Finance and Economic Affairs in its reply to the European Commission," Dr Vassallo said.

He said the proposals could help the government compile a workable strategy that must be formally communicated within 10 days from the receipt of an official reprimand.

The real problem, he said, was the laissez-faire attitude of the government in managing public finances, adding that the Green party was concerned about the country's economic situation.

AD was also worried that the June elections and the run-up to them would detract attention from the economic problems and the needed measures would be postponed further.

Prof. Cassola added that if one were to take a look at EU statistics comparing member states, old and new, one would note that in half of the cases data about Malta is missing.

"This is because structures were not prepared before the accession date and the government did not provide the necessary statistics in many areas," he added.

He said the recurrent expenditure of the government should be controlled and maintained to the forecast rate so that the workers and pensioners' spending power would remain intact over the next five years.

"The government should immediately publish the expected cost to the completion of the Mater Dei Hospital and should make a firm commitment to stick to this estimate," Prof. Cassola said.