Economic crisis ‘will hit Malta’
The economic crisis that hit Greece and Italy would sweep through Europe and eventually affect Malta, a University lecturer has warned .
Roderick Pace, director of the European Documentation and Research Centre, said it would be a mistake for the Maltese to ignore the ongoing developments in European politics where countries were implementing austerity measures.
Prof. Pace told yesterday’s graduation ceremony this scenario could have been avoided. “The thing that puzzles me most when looking back at what Europe went through in these past few years is that it could have been avoided if the political leaders stuck to what they had proposed and agreed upon,” he said.
In his speech, Simon Grima, who graduated as doctor of philosophy, touched upon his thesis that focused on the use and misuse of financial derivatives.
He said his study was “enticed” by the huge losses blamed on derivatives. It analysed the reasons behind the losses of billions of euros incurred by five international firms. He also studied the financial crisis and spoke to experts, traders and controllers.
The study revealed that derivatives were not the main reasons behind the problems faced by firms or behind the financial crisis. The crisis was mainly caused by the lack of appropriate risk management controls, lack of expertise in handling derivatives and the public’s negative perception, among others.
The value of a derivative is “derived” from the value of its underlying assets. A contract specifies conditions, based on those assets, under which “payoffs” are to be made.
Master of Arts in European Studies
Sponsor: Prof. Roderick Pace
Ian Borg, Jeanette Buhagiar, Greta Camilleri, Karsten Cilia, Cain Grech, Daniel Grima, Maria Mallia and James Mansueto.
Master of Arts in Law
Sponsor: Prof. Kevin Aquilina
Lara Lanfranco, Maria Micallef and Karen Zammit Southernwood.
Master of Arts in Financial Services
Sponsor: Prof. Kevin Aquilina
Yanica Borg, Stephanie Buhagiar Camilleri, Derren Busuttil, Jonathan Degiovanni, Manuel Farrugia, Ian Fenech, Lara Ferris, Christopher Grech, Ruth Mamo, Stefano Manicolo, Anton John Mifsud, Yvanka Lynn Mifsud, Nicole Ann Saliba, Sue-Ellen Scerri and Rose Marie Vella.
Executive Master of Business Administration
Sponsor: Dr Saviour Gauci
Dorothy Ann Aquilina, Kevin Attard, Pietra Attard, Carina Louise Azzopardi, Jonathan Charles Borg, Silvana Borg, Patrick Cachia, Johann Anthony Calamatta, Dorothy Camilleri, Neil Caruana, Leslie Causon, Svetlana Rose Curmi, Christopher Darmanin, Jason Doublet, Kevin D’Ugo, Efrem Ebejer, Tanya Ebejer, Pierre Fenech, Colin Frendo, Patrick Gauci, Alan Giordmaina, Jesmond Grech, Steven Holland, Rowena Leontijevic, Ian Mamo Portelli, Alan Micallef, Luke Micallef, Daniela Mifsud, Amanda Mizzi, Saviour Pace, Alfred Parnis, Graziella Scerri, Erica Spiteri Sacco, Clint Taliana and Lorna Taliana Mintoff.
Executive Master of Business Administration (E-Business)
Sponsor: Dr Saviour Gauci
Clive Bonnici, David John Borg, Dorian Buhagiar, Odette Caruana, Marcello Cauchi Savona, Ryan Fiorentino, Lincoln Grima, Elaine Mifsud, Kenneth Spiteri, Wilfred Spiteri, Josephine Tanti, Romina Vassallo and Kris Zerafa.
Master of Arts in Economics
Sponsor: Dr Saviour Gauci
Sarah Attard, John Farrugia, William Gatt and Kirsten Miller.
Master of Arts in Public Policy
Sponsor: Dr Saviour Gauci
Raymond Bartolo, Bernard Anthony Busuttil, Keith Mercieca, Victoria Muscat, William Peplow, Duncan Pulis, Fiona Sayan and Diane Vella Muscat.
Master of Education
Sponsor: Prof. Valerie Sollars
Lorraine Agius, Edwin Attard, Margaret Attard Mintoff, Lucienne Barbara, Mary Grace Bonnici, Philip Borg, Louise Borg Cardona, Jonathan Borg Castillo, Therese Borg Mifsud, Stephen Briffa, James Calleja, Roberta Camilleri, Nadja Caruana, Audrey Cefai, Marannie Demarco, Josephine Farrugia, Olivianne Farrugia, Audrey Gatt, Hertian Gauci, Randee Ann Gauci, Mario Muscat, Mathilde Muscat, Sonia Muscat, Alberta Pace, Jacqueline Schembri Bonnett, Elena-Bianca Scicluna, Philippa Spiteri, Lara Ann Vella, Karen Vella Pace, Robert Zahra, Charmaine Zammit, Claire Zammit, Stephanie Zammit and Esmeralda Zerafa.
Master in Inclusive Education and Communities
Sponsor: Prof .Valerie Sollars
Rita Abela, Charmaine Attard Bezzina, Francianne Bonnici and Elena Zahra.
Master in Youth and Community Studies
Sponsor: Prof. Valerie Sollars
Michael Boffa, Kevin Bonello, Ritianne Borg Saliba, Amanda Caruana and Ruth Ruggier.
Master in Early Childhood Education and Care
Sponsor: Prof. Valerie Sollars
Sandra Kluender
Doctor of Philosophy
Sponsor: Dr Saviour Gauci
Simon Grima
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VINCENT WILLIAMS
Nov 24th 2011, 21:15
I am not surprised at all by the statement from Profs. Roderick Pace as Malta has a high debt when compare to the GPD which according to the PM is 69 per cent. And this percentage is not all as GonziPN is hiding more millions and millons of public debt like the debt for building the new Parliament and the open theatre.
But the uncontrol debt situation is only the fault of PN administrations through the years when PN Governments used to stress that "id-dejn mhu xejn" and "il-finanzi fis-sod". And since GonziPN headed the present administration the debt kept on rises more and more than the economy is rising.
Many die hard Nationalists supporters does not care about the dangerous financial situation that the country is facing. Even in the view of the many warning letters from the EU delivered to GonziPartitNegattiv. But after the final whistle from the EU will blow than they all will woke up to their senses!!
James Tyrrell
Nov 24th 2011, 14:08
I found this headline interesting because the present Government have so far been giving the totally wrong impression of the situation as it stands. According to them everything is rosy in the garden and Malta has weathered the storm but unfortunately I doubt if that is the case. We have all watched our televisions in horror at the destruction caused by tsunami waves. Well what is happening at present is like a tsunami financial wave sweeping across Europe. We are at the point now where the wave is going out and people are looking at it and thanking God that it seems to have passed them by unaware that at some point it is going to turn build up in strength and hit with great force.
No matter how much it would like to do so Malta cannot separate itself from the crisis that is threatening Europe at present. Most of Malta's imports are from other European countries and if manufacturing fails in those countries then Maltese imports will be hit. Most of the items that Malta exports go to other European countries and if their economies fail then their import market will suffer which again will effect Maltese exports. Then of course there is the tourist trade. Again most of the tourist market in Malta is coming from other European markets such as Germany and put quite simply if people in other countries are suffering financial hardship the first thing they will give up is their yearly holiday which will have a major impact on the Maltese economy.
I agree partly with what Jeff Mead says below in that the Euro as I see it is failing big time and Malta needs to think about the possibility of reverting back to the Maltese Lira. When Malta was considering changing to the Euro I wrote in the papers that it was a bad idea and unfortunately that is now coming true. However unfortunately the solution to the present situation is not as simple as ditching the Euro and going back to the Lira as the damage has been done already and there is no stopping that big wave that is heading to shore.
Jeff Mead
Nov 24th 2011, 13:00
You ain't seen nothing yet Malta, its in the bag still or yet to emerge as the worst resession of the century for 2012. My advice is to follow Britain's example is to pull out and stay away from the euro, its deadly. Lo
ok at us we don't have to support Greece or Italy we are not a euro country thank God.
R ferriggi
Nov 24th 2011, 13:17
CAMERION SAID IT CLEARLY,,,,
THE EURO ZONE CRISIS IS OUR CRISIS.
Charles Cremona
Nov 24th 2011, 15:33
@ Ferriggi, True but Britain will still have a currency in place when the Euro implodes and is not worth anything and the way things are going that day is not far off.
Jeff Mead
Nov 24th 2011, 12:59
You ain't seen nothing yet Malta, its in the bag still or yet to emerge as the worst resession of the century for 2012. My advice is to follow Britain's example is to pull out and stay away from the euro, its deadly. Lopok at us we don't have to support Greece or Italy we are not a euro country thank God.
Charles Muscat
Nov 24th 2011, 10:34
You don't have to be a rocket launcher to see this coming from greedy leaders and abuse of power.
Undoubtedly this is caused by local embezzlement at it's best by politicians and who ever can dip the finger in the pot to have a taste.
Europeans are well known to be disinclined to work. Greece, Italy and Malta in particular.
Many unemployed rely on government handouts, this not only means a burden on any government but less tax to balance a budget. No wonder the deficit in such countries continued to grow till it got to a stage to where they are now. The banks in Europe are to blame too for lending money carelessly. Borrowers are defaulting as well as governments. 1+1=2.
Whom to blame? Simply themselves.