The Budget presented last week was serious and prudent. At a time when governments of neighbouring countries within the eurozone are introducing tough austerity measures to cope with the financial and economic turmoil, the Maltese government managed to continue to steer the country in the right direction.
Maltese families were the main beneficiaries of the measures announced as income tax for families where both parents are in employment and the children are still at school was cut. This is indeed a very good and effective measure that will leave more money in the pockets of families with young children.
If this Budget were presented in ordinary times, I would have been delighted with the many initiatives and measures announced. What makes this Budget special is the situation around us. Malta is part of the world, a member of the European Union and very much a member of the eurozone. The economic and financial situations in other countries directly impact our economy.
The financial situation in Greece is, to say the least, chaotic, Italy is on the brink of collapse, Spain’s unemployment stands at 23 per cent, Ireland sought a bailout and Britain is heading for a double-dip recession.
Some of the austerity measures that had to be taken by the governments of these countries include VAT increases, reductions in salaries of civil servants, cuts in pensions and higher tuition fees. Greece’s and Italy’s prime ministers had to call it a day and be replaced by two technocrats.
The message getting across is that the political class is not delivering and the solution is technocracy. Lucas Papademos, a former vice president of the European Central Bank and Mario Monti, a former European Commissioner, have been called to sort out the mess.
There is optimism among European leaders about the appointment of the two new prime ministers and their ability to put their houses in order.
The rumour in some corridors has however been that the banking class is now taking over. But are we sure their priorities are well connected with the needs of the people? Will their decisions be serving the balance sheets of the banks or the people?
In the world of international football, clubs are generally run by businessmen who have an interest in the game and are supporters of the club they run. The order of their priorities while managing the club is as follows: run the club efficiently without facing financial difficulties, win games and competitions and please followers. They generally balance their decisions to achieve the three objectives. Sometimes, unpopular decisions, such as selling a good and popular player, have to be made to ensure the financial stability of the club. When such decisions are not taken at the right time the club ends up in administration.
The administrators are not football fans. They have no ties with the supporters and are not concerned about winning games and competitions. Their actions are solely based on financial considerations. Their aim is only the survival of the club. Getting relegated to lower divisions is not a concern they face. Needless to say, in such circumstances the club’s supporters will not be happy.
What has this got to do with the world of politics, one may ask. I consider technocrat governments to be like football clubs’ administrators. They take over to clean up a mess.
Politicians put the people at the centre of their policies and always ask themselves how a particular policy is going to affect the people. Like a businessman running his club, a good politician continuously attempts to strike the right balance between different objectives. At times, difficult and unpopular decisions have to be made to ensure the stability of the country.
There is... no need for technocrats to run our country- Hermann Schiavone
When, 10 years ago, Leeds United’s boss, Peter Ridsdale, took out unsustainable loans to seek instant success, he condemned the club into administration. Leeds United did not play Premier League football ever since.
As in the world of football, there are maverick politicians who are only interested in short-term gains.
In Malta we have Joseph Muscat who is continuously promising heaven on earth if he is entrusted by the electorate to lead the country. The Leader of the Opposition has already said in public that he is in favour of technocrat ministers. If the Labour leader becomes Prime Minister and sticks to his unsustainable promises, Malta, like Greece and Italy, would definitely have to turn to technocrats to run the show. Had technocrats been in charge, the Budget would have been very different.
There is, however, no need for technocrats to run our country. The Budget for 2012 is a reflection of a dynamic and creative Administration made up of able, serious and focused politicians not calculator technocrats.
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