We have just celebrated our third anniversary since Malta joined the European Union. Three years ago, the very idea of joining the EU was anathema to the Labour Party. Malta was ushered into the European era, not before having its application to become full EU member frozen for 22 months, during which period the Labour government pledged a so-called special relationship with the EU as opposed to full membership.
Alfred Sant, whom I continue to regard highly for his genuine intentions, used to predict that our economy be hit hard if we joined the EU. Labour made incessant efforts to remind the electorate that our economy was set to face an unprecedented economic doom if we embraced full membership. Nonetheless, three years on, Malta's state of the economy, spearheaded by the incumbent Prime Minister, contrasts heavily with such predictions.
Until this day, Malta is still actively trying to overcome the legacy of the pre-1987 socialist antics underlined in entrenched protectionism and a bloated public sector. It was only after 1987 that we came to realise that Malta can only progress if we work harder without having to rely on state intervention.
This is the reason why recent statistics revealed that unemployment in Malta is going down to a record low. The average of those employed in August 2006 reached a staggering high of 138,950 compared to 138,311 in the previous year. In 2006, 6,100 new jobs were generated and Malta managed to secure no less than Lm575 million in foreign investments.
On an equally significant note, it is evidently clear that, by 2015, Malta is designed to be Europe's foremost regional IT centre and the best financial services centre in the Mediterranean region. Concurrently, our economy is shifting to the upmarket end, with incoming foreign investment in 2006 standing at a record high of more than €1.3 billion and the SmartCity project designed to generate no fewer than 5,600 jobs.
Despite the unjustified criticism levelled at the National Statistics Office, no one can contest that our manufacturing industry, which, according to Labour, should have been doomed as result of full membership, generated over Lm1 billion worth of goods.
Malta, with the exception of Slovenia, is the only EU country out of the 10 new member states that will secure the adoption of the euro currency in no less than four years since membership. This signifies that Lawrence Gonzi's government has successfully put the spiralling cost of living under control, despite Malta having to sustain unprecedented record oil prices. Concurrently, the Gonzi-led government managed to reinstate the public deficit to sustainable levels for the last 18 years, down to below 2.6 per cent of our GDP, despite the fact that his government continued to invest heavily in education and offering free health care.
In under 12 months, Malta will start to benefit from no fewer than €850 million under the Structural Funding framework, which monies will be injected directly into our economy.
In all fairness, this success has been accompanied by tough political decisions supported by the re-dimensioning of many of our state-owned entities that had been a burden on the public exchequer for so many years. The pre-budget document, which will soon be available for public consumption, will take a positive shape only because a pre-determined sound financial framework is in place in order to provide the flexibility to reduce taxes. These decisions were therefore indispensable, regardless of the country's obligations underscored by the eurozone.
Nonetheless, if the Nationalist Party does not embark on a strong campaign that capitalises on Dr Gonzi's political record and documented achievements in such a relatively short time, there is a risk the party will lose out. The Prime Minster's human approach and confidence in people's abilities can certainly attract the moderate and undecided vote. Any attempt to demonise Dr Sant in the process is not only inhuman, but will only serve to distort this objective.
Mr Musumeci, an architect by profession, is a Nationalist candidate on the sixth and seventh electoral district. He is also mayor of Siggiewi.
rmperiti@onvol.net