Editorial

In the circumstances, the government could hardly do much more than leaving no stone unturned to stimulate the economy without falling into the trap of resorting to any excesses that could exacerbate an already precarious situation.

In a nutshell, the Budget 2010 seeks to achieve three main aims: protect existing jobs and generate new ones; encourage the consolidation of existing investment and attract more foreign direct investment; and put in place measures that would keep the economy going and, indeed, give it the ability to rev up when things start looking good again.

The Budget 2010 will cost the country €2.5 billion, at a time when the economy has shrunk by two per cent (as against four per cent in the eurozone), the jobless exceed 7,500 (as of September) and inflation stands at 2.5 per cent (expected to drop to two per cent next year). It is expected or, at least, hoped that the big economies will start getting better in 2010 -though one can never be too cautious - which would mean that the demand for Malta's exports could start growing. The government is forecasting that the Maltese economy will grow by about 1.1 per cent and that the unemployment rate would drop slightly.

Government deficit for this year is expected to be €217.6 million euro, or 3.79 per cent of the Gross Domestic Product, and its debt is forecast at 67 per cent of GDP at the end of 2009, 11 per cent below the eurozone average. On a longer term or, to be precise, over the next three years, the government is planning a deficit of 3.9 per cent of GDP for 2010, 3.2 per cent in 2011 and 2.9 per cent in 2012. This means that Malta will not be complying with the European Commission's demand to bring the deficit down to the three per cent threshold, in line with the Maastricht criteria, by the end of 2010.

Yet, at the end of the day, these are still forecasts. Whether they are met or not depends not only on factors that one can only predict or hope for but, perhaps more so, on what we, as a country, are willing to do to make them happen.

As The Times keeps repeatedly insisting, success or failure depends both on to what extent the government is willing to take the people in its confidence and also on how much are the social partners willing to work closely with the authorities, always keeping both feet firmly on their ground.

Making unrealistic claims, whether in terms of salaries, other work conditions or tax is as detrimental as the government announcing that the utility rates would go up but failing to say, at least, what Enemalta and the Water Services Corporation are asking for. Of course, the Malta Resources Authority may not agree with such claims but, surely, the taxpaying public has every right to know what the utilities have in mind.

The assistance being offered by the government may be adequate to offset the planned increases but, on the other hand, it may also be an indication of how steep such increases will be. Why leave the people, already struggling to balance their own domestic budget, in suspended animation and unable to plan ahead for the new year?

Investing in the people and in the country, the slogan of the Budget 2010, also depends on mutual trust. Only by working together could the targets set in this Budget be attained.