Most social partners confirmed yesterday there would be no surprises in Monday’s Budget, which would focus more on strengthening the country’s financial position.
At the end of a three-hour meeting, the last Finance Minister Tonio Fenech had with the social partners before Budget Day, the General Workers’ Union’s general secretary, Tony Zarb said that, if nothing changed from what the minister had told them, “the burdens on workers and their families will remain”. Although there were some “interesting proposals”, it was clear burdens would remain, he added.
“It is evident the government took on board very little of the proposals we made. The cost of living adjustment is just €1.16 when the actual cost of living increased much more than that. We appealed to the minister to do something until Monday to ease the burden on workers and their families,” he said.
Mr Zarb criticised the cost of living adjustment mechanism which, he said, was still being calculated using the old Maltese currency rather than the euro. As a result, workers would receive €1.16 and not €1.50 a week.
Vince Farrugia, director general of the Chamber of Small and Medium Enterprises – GRTU, said his organisation insisted that the government address the country’s fiscal position to avoid any fines or sanctions from the European Commission.
William Portelli, from the Confederation of Maltese Trade Unions, said the Budget sought to avoid the introduction of austerity measures to make up for the deficit, a stance taken by other countries across Europe.
He said, that, although there were measures which included training, one had to wait until Monday to see how the Budget would affect the middle class.
The president of the Malta Employers’ Association, Pierre Fava said the Budget would consolidate Malta’s fiscal position by addressing the deficit.
Earlier yesterday, Mr Fenech met a delegation from the Forum umbrella organisation made up of 11 unions to discuss their proposals. The meeting was requested as Forum is still not a member of the Malta Council for Economic and Social Development, a seat it cannot attain unless the MCESD law is changed.
The Forum said it appealed to the government to ease the burdens being shouldered by Maltese workers, families and pensioners.
It told the minister the government should concentrate on activities that improved the GDP, the deficit and productivity so that wealth would be generated. However, the Budget should also see how to overcome social and real poverty.