Eurozone crisis - PM says treaty change should be last resort
Prime Minister Lawrence Gonzi said today that Malta remains of the view that treaty change should be considered as a last resort to solve the eurozone's debt crisis and settle the markets.
Speaking at the airport after talks in Copenhagen with the Danish prime minister, Dr Gonzi said treaty change was a complex and long process which involved ratification by all national government.
However there could be other ways to settle the current crisis, the Dr Gonzi said, including mechanisms to make currentfiscal discipline safeguards effective. However Malta would back the option of treaty change if that was seen as necessary for the crisis to be settled.
Dr Gonzi said the government was awaiting the details of the proposals made yesterday by French President Sarkozy and German Chancellor Merkel as well as proposals due to be made by EU President Van Rumpoy.
In Copenhagen Dr Gonzi had talks with Danish Prime Minister Helle Thorning-Schmidt as part of a consultation process before Denmark assumes the EU presidency on January 1.
The talks focused on the presidency's priorities, notably the regulation of the financial sector and the creation of 'green' hobs. They also discussed migration and the situation in the Mediterranean.
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mark borg
Dec 8th 2011, 18:56
@ Mark Cassar
Lol,You cannot be serious!!!!!! One voice.... Our voice is just an echo or hoarse voice, compared to Germany and France....take a look at the problem of the thousands of illegal immigrants roaming about all over tiny Malta.
j brincat
Dec 7th 2011, 12:06
We are too minute to attract the attention of anybody in EU. We are taken for granted.
It's Merkel and Sarkozy that call the shots. We meekly follow the Pied Piper(s).
(jb)
Mark Cassar
Dec 8th 2011, 05:33
Each EU member state has one voice at the table. Merkel and Sarkozy cannot do just what they want. The others have to agree.
Emanuel. Vella.
Dec 7th 2011, 10:52
@Charles Muscat,@23:20.,Yesterday.Li gara mhux tort ta Mr.Stephen Borg,tort ta min mexxina dawn l- ahhar 25 sena,mela huma iridu ihalsu u mhux Stephen Borg.Sur.MUSCAT taf (jekk qed tghix hawn MALTA)il-hajja dejjem toghla il-pagi ghall dawn l-ahhar 8 snin baqaw l-istess,possibli lil DUN VICTOR GRECH ma smajtux fuq il midja lokali jghid li hemm bzonn il minimum wage biex toghla,jew verament int qed tghix barra minn MALTA,u qed tigi tivvota u terga tmur lura fejn qed tghix barra minn xtutna.
Emanuel. Vella.
Dec 7th 2011, 10:47
@Charles Muscat,@23:20.,Yesterday.Li gara mhux tort ta Mr.Stephen Borg,tort ta min mexxina dawn l- ahhar 25 sena,mela huma iridu ihalsu u mhux Stephen Borg.Sur.MUSCAT taf (jekk qed tghix hawn MALTA)il-hajja dejjem toghla il-pagi ghall dawn l-ahhar 8 snin baqaw l-istess,possibli lil DUN VICTOR GRECH ma smajtux fuq il midja lokali jghid li hemm bzonn il minimum wage biex toghla,jew verament int qed tghix barra minn MALTA,u qed tigi tivvota u terga tmur lura fejn qed tghix barra minn xtutna.
Mr A Magri
Dec 7th 2011, 09:25
National Debt Reminder:
1998: 1790 million
2001: 2507 million
2005: 3355 million
2008: 3626 million
2009: 3951 million
2010: 4250 million
Alfred Dimech
Dec 7th 2011, 10:41
National debt will always be on the rise. What counts is the public debt as a % of GDP. For example
2007 61.7%
2008 63.1%
2009 67.5%
2010 67%
2011 66.7%
Don't get me wrong, it's not ideal and Brussels has told Malta to cut public debt. One way would be to cut stipends, get rid of Air Malta, privatise Mater Dei, sell off all government owned property, increase pension age to 70 and tax everyone to kingdom come. Another extreme would be the forced nationalisation of various private companies and banks (though the EU wouldn't permit it) and perhaps borrowing money on the never never from dubious sources (maybe North Korea or Venezuela since Libya has its own problems now).
Those are the only quick fixes I can think of, otherwise, the government, regardless of colour, can hope for at best a gradual decrease of public debt, assuming the rest of the Eurozone fixes itself.
pat muscat
Dec 7th 2011, 11:26
Pn did not create any wealth; it simply squandered the money it borrowed from the banks and the people. This debt has to be paid and serviced and the day of reckoning is very near.This would leave future Governments with no emergency funds, cause Pn especially GonziPN was only interested in vote catching and not in the good of the country. But who cares, neither Fenech Adami nor Dr Gonzi will be there, to fix the mess they cooked at Castille; its the ordinary citizens who will have to face the music!
Carmel Cilia
Dec 7th 2011, 08:56
Do I take it that our prime minister has already decided on what Malta should do re these treaties? Did he decide without consulting anyone outside his party on this national issue. Was the opinion of the opposition which represents at least half the Maltese and which might tomorrow be in charge of these islands consulted? Does the prime minister realise that we have to be united if we are to weather the storm? If not then sorry we really are in trouble and I would ask if in such a matter no consultancies are taken why did we taxpayers have to fork out 35 million euros in consultancies alone since the last elections?
I do not see eye to eye with Dr. Sant but one has to be a gentleman and say that he was right when he said that the moment was not quite right for Malta to join this currency.
Alistair Busuttil
Dec 7th 2011, 08:34
@ charles muscat.Funny or not its what mario monti did.Anyway if they would cut my wage in half will it be added to the 500 weekly of the mps or what?
victor caruana
Dec 7th 2011, 08:15
You're sure will be at the table where decisions are taken....however you will be there only to listen and follow orders....and by the way who leads the EU Sarkozy and Merkel, Barroso, Rompuy, Mickey Mouse....Who???
Mark Cassar
Dec 8th 2011, 05:24
I do not agree. We have a voice at the table too. The difficulty is getting them to listen to our point of view; but if it is valid they will listen.
Charles Sammut
Dec 7th 2011, 08:12
Fools rush in where angels fear to tread. And this is exactly what the PN has done in its frenzied rush to join the EU. Now Gonzi is being demoted to a post that he can try to handle, Mayor of Malta. Never mind he is not even capable of providing the citizens with half decent roads.
Emanuel. Vella.
Dec 7th 2011, 08:08
@ Angus Black,(Yesterday @20:44.),Mela IL-P.N.lilek tak iz- zieda ta 500 EURO ukoll,kemm taqbez ghalihom twazi kull kumment li ghaddi kontra taghhom trid tirrispondi ghalihom.Sur Angus Black,il-kulur abjad jghid li hu abjad u il-kulur iswed jghid li hu iswed jekk joghbok ta THANK YOU VERY MUCH,SUR ANGUS BLACK.From a floating voter li fin 1981 u fin 1987 ivvota GHAL P.N. u l-elezzjoni li gejja ha nivvota lil PARTIT LABURISTA .
Mr Peter Korsten
Dec 7th 2011, 07:58
Totally unrelated to the subject, but at least our PM doesn't embarrass the nation when talking to the Danish PM, quite unlike our old friend Berlusconi.
As for fiscal discipline, it is what this country needs. It'll be tough for politicians, though.
j brincat
Dec 7th 2011, 07:53
@Joseph Cauchi Senior
Quote:"The Euro will not fall!
Wishful thinking, perhaps?"
If you follow the financial scene you would have realised that still remains to be seen.
As regards your 'wishful thinking' one has to be a masochist to wish so. No one knows the exact repercussion of a 'euro fall' but could be catastrophic.
(jb)
Wenzu Vella
Dec 7th 2011, 07:40
All Malta can do at any leaders & ministerial meeting is nothing more than to agree with the motions because they are there as just a rubber stamp.
Malta voted to become a member of a club called EU. A club with very big and influential members by their very nature never liked to be hampered by small unimportant countries. Germany and France are going to make sure they win the day because they stand to loose the most.
Joseph Ellul
Dec 7th 2011, 09:02
You are a bit wrong. Germany and France have already lost the money, the plot and the confidence of its people. This has been proven by them when they accepted the US bailout. How can the US use its fiat money to bailout Europe ? It cannot but by printing more dollars to support the EU, both currencies will devalue against the Yuan (and Gold). In retrospect, this is not a bad plan as long as Europe does not start to print money. So, by bringing the Euro under the $US umbrella, there will be a united front in keeping oil priced in $US and the Chinese will have no option but to keep dealing in $US.
It is a bit more complicated but this is the main plot, at least the way I see it.
David Magro
Dec 7th 2011, 05:01
It seems that our Prime Minister is already accepting the changes as proposed by Germany & France. This would mean: Equal tax system.So far so good, however does this mean that:
1.Salaries equal to Germany one`s?
2.Enough Tax & Vat avation? So far Malta has one of the highest tax & VAT avation, even the Government instigates this as occassionaly he is giving concessions to those not paying taxes
3.Does this mean that there has to be a consensus in the parliament? Ratification /referendum
These are questions that Cikku l-poplu would start to make.
R. Gauci
Dec 7th 2011, 00:29
Araw f'hiex dahhaltuna tal-PN!
godwin difesa
Dec 7th 2011, 11:21
Dahluna fid dejma fif kienu id dahlu nies jahdmu qabel f zmien il laks.Issa naraw fejn ha dahluna la tkunu fill gvern dal waqt.
Bertrand Malley
Dec 7th 2011, 00:24
I do not think that the Prime Minister fully comprehends the potential impact that such a change would have on Malta, including the gaming sector in which I (and many thousands more) happen to be working.
Otherwise I'm very sure that he would be speaking differently ...
Alfred Grech
Dec 7th 2011, 00:07
An advice to our PM and the EU politicians - one way of not falling into a mess like you had fallen is to be careful on how to spend the money - do not build anything unnecessarily, travel less - at times a phone call could suffice - look before you leap - money does not grow on trees and it has wings.
Mario J Spiteri
Dec 6th 2011, 23:00
Hon PM, are you going to refuse your 500euro weekly rise or putting down the energy bills? Just to let you know Hon PM my friend a simple skilled labour had calculate that our wages compare only for 3weeks!!!!!!!!!!!! Shame on you & your cabinet Hon PM!
Joseph Ellul
Dec 7th 2011, 08:52
Yep. Shame on you and also Julia Gillard of Australia. She got 28% rise, yes, that makes it, wait for it....EU1730 per week rise !! The workers all over the world suffer whilst their politicians bicker in public and pat each other on the back in private. This is what politicians think about the value of our currency. So. if you value your life and your money, run to the bank and get it all out. If everybody does this then no prime minister will be able to get your money to pay off their own debts.
Saviour Cachia
Dec 6th 2011, 22:07
I stand by my opinion. Last resort or not, the Golden Rule to be suggested by Nicolas Sarkosy and Angela Merkel should came into effect. Ok how immediate depends maybe on a long process of ratification, but if it is necessary, no European Union member could ignore the reality and stay passive. If for a diabetic person it is necessary to cut of one his/her legs, in itself it is a hard blow, but at least better than let the situation get more grave and he/she may die. Certainly the Eurozone crisis needs immediate attention and let not allude ourself, that it would be better for it may bring the disintegration of the European Union. Let us be realistic and acknowledge that the EU is here to stay.
Matthew Tanti
Dec 6th 2011, 21:30
Hadd ma jixtieq li l-Ewro jisfaxxa, imma biex dan ma jsehhx il-pajjizi fiz-zona Ewro jridu juru sens veru ta' solidarjeta' li fl-opinjoni tieghi ma tantx dehret s'issa anka fi kwistjonijiet ohra ez. l-immigrazzjoni. Certi pajjizi jridu jigbdu l-habel komuni u mhux x'jaqbel ghall-politika taghhom. Mill-banda l-ohra mhux sew li l-biezel ihallas ghal min fil-passat berbaq u heba il-problemi finanzjarji tieghu. L-Ewro u l-pajjizi taz-zona Ewro iddahhlu fi sqaq li difficli jinhargu minnu.
Joseph E Briffa
Dec 6th 2011, 21:06
S&P's are not helping matters in Europe by their threats to downgrade Eurozone countries debt standing. Being a US rating agency a strong euro is not in their interest.
Joseph Ellul
Dec 7th 2011, 08:43
Malta has got a C- . Not good, not good at all !! Ask the MLP and NP where has all the GOLD gone!!
Angus Black
Dec 6th 2011, 20:45
Sorry Alistair, for misspelling your name!
Alistair Busuttil
Dec 7th 2011, 08:29
mr black this is recent news about the italian premier salary,please follow the media
Mrs Joe Felice-Pace
Dec 7th 2011, 09:09
There was no need to say 'sorry'. There is so much bad English in these comments that spelling a name wrongly is just a trifle.
Joe Felice Pace
Alistair Busuttil
Dec 6th 2011, 20:38
maybe gonzi could donate his salary like mario monti did,after all we want to do everything like europe does
Angus Black
Dec 6th 2011, 20:44
Maybe you should be a bit more original than echoing a long overused grunt from Joseph and his Labour Party.
Come on Alister, think of a better one. Stale and inane comments are boring.
Mr Stephen Borg
Dec 6th 2011, 21:59
@Angus Black
As you are so wise please do come forward and propose something yourself. The current administration boasts on it's inclusiveness and openness for consultation. Maybe you would come out with a better idea but the idea of Alistair is a reality with all other European Governments and if we want to be European we should follow their examples.
Charles Muscat
Dec 6th 2011, 23:20
Very funny, how about having your wage cut in half assuming you are smart enough to have a job?
Gordon Farrugia
Dec 7th 2011, 01:57
Angus what about
Gonzi to EU: Yes yes yes YES Sir! I will do whatever you ask of me. I am your servant. I will do whatever I am told even if this is not in the best interests of my country.
EU to Gonzi: Good boy.
j brincat
Dec 7th 2011, 07:46
And maybe the PN should stop braying to justify the astronomical increase the PM and his ministers gave themselves when they know pretty well that it was not justified and has not gone down well with many, even PN sympathisers.
(jb)
Paul Caruana
Dec 6th 2011, 19:55
The moment of truth approaches....just how much in common can 27 very different countries have? Yet, if they do not converge further, the euro is doomed.
If the Euro falls, it will be the end of the EU as we know it.
C Cassar
Dec 6th 2011, 20:30
The Euro will survive because most of the Eurozone doesn't have a problem, simply a few of the peripheral countries which the media have jumped on as usual.
I'd be much more worried about countries such as the UK which has a dire economy and is firiing tens of thousands of public sector workers, has a deficit larger in percentage terms than Greece and is printing money leading to huge inflation.
Joseph Cauchi Senior
Dec 6th 2011, 20:34
The Euro will not fall!
Wishful thinking, perhaps?
JC.
A Cardona
Dec 7th 2011, 00:05
@ Mr Cassar
Are these the peripheral ones ? - Ireland, Portugal, Spain, Italy, Greece and UK (that you mentioned)? Its quite a huge lot.
Personally am getting a sense of panic and really wish this nightmare is over asap but as events are unfolding its the other way round. As things are the Euro is on the brink. By Friday if a proper solution is not found it will spell the end of the EU as we know it. Hope my pessimism is completely wrong.
@ Mr Caruana
IF the Euro falls we are screwed for well and good mate. Forget politics and other BS. Its us who will be getting the blow. Our future is at stake here.The parasites at the top earning the millions for preaching lies and offering soap bubbles (full of nice colors but nothing else) will be safe and relaxed whatever the outcome of this mess.Look back at how many workers have been sacked... the majority of the politicians are still in their place back from 2008.They may seem worried on the news... but that is it... its just an illusion.
Mr Joseph Carmel Chetcuti
Dec 7th 2011, 02:42
Against the Australian dollar, it has already fallen well over 30%. How could you characterise a fall?
Mr Kevin Zammit
Dec 6th 2011, 19:36
Qatt ma rajtu jitbissem daqsek il prim :)