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Muscat says Moody's negative outlook confirms warnings to the government

Labour leader Joseph Muscat said today that the negative outlook given by Moody's to Malta last night reflected the growing need for a decisive and capable administration in Malta.

Speaking during campaign for the local council election in Vittoriosa, Dr Muscat said Malta needed a stable government which was not afraid to face votes in Parliament.

He referred to last night's downgrade by Moody's and said that while part of the reason reflected the eurozone crisis, it also raised problems of local economic management and had said that Malta had a weak debt metrics, which reflected what the PL had been saying about the past weeks on the need to reduce debt levels.

The Moody's downgrade and forecast also match concerns raised by the PL, the EU, the IMF and Standard and Poor's that economic growth would not match government projections.

Lack of economic growth would impact all the government's projects and living standards, he said. Last year's deficit targets were only achieved because the government had slashed capital spending, he said. 

Dr Muscat praised Vittoriosa council for balancing the needs of the residents and the commercial community and said a Labour government would help the council on the building of a new car park.

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Philip Hili

Feb 15th, 01:16

@ chris decarlo

I must say that you do not follow foreign news.
If I am not mistaken, ALMOST ALL EU countries even those who are not in the Euro Zone, like Briton are being or will be affected by Moody's decisions.

Mr Andrew Camilleri

Feb 14th, 17:34

You seem to forget the disaster made by our Minister of Finance where just over a year ago he suddenly suspended all pending applications for foreign residents applying to settle in Malta. He left a sour taste in the applicant's mouths and I doubt how many of them did eventually settle here. Then he issued the most impossible conditions for foreign residency permits. He killed the goose that was laying some golden eggs.

pat muscat

Feb 14th, 16:21

Gonzi cooked the mess and he should solve it; otherwise, se inkomplu bis-slow puncture, u bil-pot hole u bil-klikka, u b'dawk il-veritajiet li isemmi Franco Debono. Min hawwad fil-borma jaf xfiha!

J Busuttil

Feb 14th, 19:22

@ Pat Muscat

" Gonzi cooked the mess " Skond il-one News

pat muscat

Feb 15th, 08:59

Gonzi cooked the mess, spoiled the broth, and he is trying hard to gulp it down our throats!

silvio loporto

Feb 14th, 15:27

It just happens that it is not Muscats task to restore Moody's confidence in Malta.
Are you forgetting that we still have Gonzi as P.M. so we have to leave it up to him.
Full stop, fresh line.

pat muscat

Feb 14th, 15:39

If we get rid of GonziPN and elect Dr Muscat as a leader; that's already a good beginning!

Joe Vella

Feb 14th, 16:09

what Muscat has offering so far is a receipt for disaster that will lead Mala at full speed to the same situation that Greece found it self in.in . From lowering Electrical tariffs, from promising to reimburse the car registration tax regardless what the courts decide. Joseph Muscat has promised t reduce electrical tariffs and the way he said so is by reducing the Rate of return that Enemalta fractures in its' pricing. Pretty soon Malta will not only end up like Greece, put will going back to the famous '70's and '80's and wait for the Government to tell us when we can have a shower or put on the lights.

pat muscat

Feb 14th, 17:10

WE might not be like Greece yet, but the feeling is the same; I mean with 5 billion of debt and Dr Gonzi still increasing the mountain of debt with the building of the Parliament and theater? This is a disaster in the making!

James Dimech

Feb 14th, 17:41

@ silvio loporto

it will be well Muscat's task if he wants to be elected ! and he'd better tell us how he is going to do it if he is fishing for our trust !

@ pat muscat

No it will not be a good beginning. We might actually be worse off by getting rid of a tired Gonzi to replace him with a Joseph Muscat - a man who is proving to be all image and no substance


Mario Piscopo

Feb 14th, 20:59

@ James Dimech

That is exactly what we need a fresh start and a new way of managing this country! I am sure that JM will give us concrete details on his plans once the time is right to declare his intentions..I do not believe it is his place of giving these solutions right now. On the other hand, why is it always JM that is being attacked of not giving his proposals, howcome LG is never being asked what his future plans are for this country to overcome this economic hurdle? Oh yes, I forgot that he is just interested in his petty politics with his main aim to get re-elected as leader of his party!

Our country's interest is far more important than that!

Philip Hili

Feb 15th, 01:24

@ pat muscat

On what grounds the Maltese people are going to trust and elect Dr. Emails?
Have you heard any suggestions or policies from the LP?
Why you are so sure that the Maltese are going to trust the politics of "Tom & Jerry"??? It's a pity Walt Disney passed away for the might have thought it over to come to Malta and shoot a Walt Disney production with the main actors Varist and Dr Emails.

James Dimech

Feb 14th, 17:45

Pat, you do not need to wait for an electoral programme to make proposals.

This is incredible - our PM is scared to face Parliament. And Muscat is scared to make proposals. What a farce!!

Philip Hili

Feb 15th, 12:13

@ Pat muscat

Dear Mr. Muscat,

Today, at 01.24, I ask the following questions:-

1.) On what grounds the Maltese people are going to trust and elect Dr. Emails?
2.) Have you heard any suggestions or policies from the LP?

Up to this time you haven't found the time to answer me.

Could you please do so? Otherwise, your comments are ALL RUBBISH.

Thank you.

J.C. Borg

Feb 14th, 14:54

We had no proof yet.

Lanqas terremoti fil-partit ma kien hemm, hlief ghal bidla fl'arma.

Michael Gatt

Feb 14th, 15:35

Because Dr. Muscat has not lost his credibility as has happend to Gonzi PN

Frans Aguis

Feb 14th, 17:02

Why shouldn't you?

Angus Black

Feb 14th, 14:40

Mr Borg, if Moody's decreased Malta's rating 'to reflect the potential for a further decline in economic and financing conditions as a result of a deterioration in the euro area debt crisis', there is nothing the government can do to alter its opinion. If governments wait for opinions, quite often contradictory, then budgets could very well become a weekly exercise.

The fact is, confirmed by ongoing statistics, that Malta has performed above average in 2011 even if the EU, IMF et al had predicted a much more feeble performance. A good Finance Minister can feel the pulse of the economy under his watch, much better and much closer than some bureaucrat in Brussels or elsewhere. Malta's statistics are confirmed by the fifth lowest unemployment rate, the record number of fully employed, the confidence of investors consistently oversubscribing government bonds and the remarkable increase in exports. Hardly a weak performance.

If ratings are affected by weak performances in other countries, the government can do little about them other than keep a close eye and not embark on unnecessary expenditures which create deficits.

pat muscat

Feb 14th, 15:45

@Angus Black. The Maltese financial minister must have a 'solar watch' ( arlogg tax-xemx) then, as for the last three months we've had no sun! As the proverb goes' self praise is half slander'!

Mr Andrew Camilleri

Feb 14th, 17:38

@ Mrs D. Black: "a good Finance Minister can feel the pulse of the economy under his watch, much better and much closer than some bureaucrat in Brussels or elsewhere.". Yes but the bureaucrat in Brussels does not have an election or votes to win. The bureaucrat will describe things as they are without putting any spin or seeing one side of the issue only.

A Dimech

Feb 14th, 14:34

who created the problem? by any chance, was it Gonzi?!

pat muscat

Feb 14th, 14:43

@ Mr A. Bonello. Jekk ma jkomplix izid id-dejn kif jaf jaghmel biss Dr Gonzi, Dr Muscat ikun diga qed isolvi il-problema li wekkewlna ghal hamsa u ghoxrin sean shah il-PN! ....NB Tiftakar Money no problem?

James Dimech

Feb 14th, 14:49

Mariella, qalbi, qed nitolbuh ghas-soluzzjonijiet ghax Muscat irid il-vot taghna biex imexxi lil pajjizna. U ahna rridu lil xi hadd li jirranga s-sitwazzjoni u mhux xi zatat li mhux kapaci u li jgibna aghar milli ahna !

Mario Piscopo

Feb 14th, 21:03

James difficli mmorru ghar milli ahna, certi li kif jigi cans JM ha juri bic-car l-pjannijiet li ghandu.
Bl-istess ragunament ghax mhux qed titolbuhom lil LG dawn soluzzjonijiet wkoll? Huma qeghdin fil-gvern u hu rwol taghhom li jkunu kapaci jirrangaw u jzommu sitwazzjoni fuq livell stabbli kemm jista jkun? Sadanitanti kellna 2 downgrades ta rating fi zmien ta ftit xhur.

Mary Ann Borg

Feb 14th, 15:36

Mela Sur Borg, anke AAAAA konna. Ibda mid-demokrazija, sac-cikkulata u t-tooth paste. Plus is-sistema tat-telefon u anke l-ilma li KMB importa minn Sqallija! Ezatt, Aaa konna!

Joseph Borg

Feb 14th, 16:08

@Mary Ann borg
Prosit x'argument dak. Irragunajt bhal tifla bic-cikkulata mars f'ideja.
Il verita toffendi hux.

pat muscat

Feb 14th, 17:32

@Ann Borg.And when the PN stole two elections in 1962 and 1966- when there was no freedom of conscience and when there were no free elections for those who wanted to vote labour; then the credit rating for democracy was AAA? Xi tridt tghid bic-cikkulata; ghaxar snin qabel il-golden years tal-PN jigiefieri in the late 60's, nofs Malta kient ghada bla toilet suriet in-nies u bla ilma! Tiftakarhom il-vitijiet ta l-ilma fit-triq tieghek?

P Buħaġiar

Feb 14th, 12:27

@Fran Abela.
How much you think is stupid an opposite coach reveals HIS/HER tactics before a final game? Days before an election stay awake because the powerful Joseph Muscat's earthquake has to come. And after all, what happened from the Surplus Budget predicted from Gonzi Partit Negative days before 2008 elections?

John Zammit

Feb 14th, 12:33

As you are not an idiot you have to wait until the Prime Minister Decides to call an election.

Tony Busuttil

Feb 14th, 12:50

you have to wait till the time comes.
I regret to say yes we are dumb, because we are accepting everything which was not in the manifesto like the €500 weekly increase to the ministers

Mr Joe Micallef

Feb 14th, 12:29

Reverse thinking ability is great....when one is in control of the normal thinking sort. Anyways you may start looking at the budget document for some answers.

George Azzopardi

Feb 14th, 12:39

mela qed taghmetti li hawn il-problemi .. ) anzi ejja

Victor Calleja

Feb 14th, 12:37

Mr. Tanti if you think that the blunders done by this administration are to be solved in a year or two by J.Muscat you are totally out of tune.

It is very easy to demolish than to re-build. It takes time to bring our finances back to track. In the present global and local situatuon we don't need ministers emplying consultants with 6000 euro per month. The safe pair of hands are for the clique and not for the rest.

Nathalie Frendo

Feb 14th, 15:26

If only Joseph was a magician and not a politician. But still your sarcasim is uncalled for in such troubled times. This is not about politics but about serious and threatening finacnial crisis which effects us all whether we are blue, red or green.

John Caruana

Feb 14th, 12:50

I totally agree as i have asked the same question more than once. Where were these credit rating agencies in 2008? There vision is so good that they gave Lehman Bros a AAA rating a month before their collapse.

Why do we still give weight to what they say, downgrade or upgrade? All they are doing now is covering their ass. If things go as they say then they can safely say 'we told you so'. If things get better then they can say 'that their warnings prompted the right action'.

From their position it is a win win situation

walter camilleri

Feb 14th, 14:23

You are right not to care about Moody's rating perhaps, and Moody certainly don't care whether you do or don't. - because you don't really matter.
The people who matter are those who do care about Moody or other ratings - the investors who need an informed opinion to help them decide where to place their funds. GonziPN worry as well, precisely because investors listen to Moody statements, and not to Government propoganda.
It is pointless being rude (titghajjar) to Moody. They do not listen to uninformed opinions.

Walter Camilleri

Michael Mercieca

Feb 14th, 11:48

Very well said

Joseph Camilleri

Feb 14th, 12:02

I'll take my chances. If that fails too, than its very poor Malta for us all.

Victor Calleja

Feb 14th, 12:40

We can't be worst than we are now. So this is going to be the election buzz word in the near future.
What if J.Muscat scores better than Gonzipn? What would be your comment?

John Zammit

Feb 14th, 12:36

You are still living a decade ago

Michael Mercieca

Feb 14th, 11:50

while he's at it he can see to Portugal and Spain too.

Victor Calleja

Feb 14th, 12:42

Kieku paroli fil vojt ghandkhom. Allura nghid jien kif ghadhom ma bghatux ghal Lawrence meta kullhadd jghidlu bil miraklu li irnexxilu jghamel hawn Malta?
Forsi jerga jgib lura il 500 ewro fil gimgha bhala konsulent.

Joseph Mifsud

Feb 14th, 12:51

@ E. Gatt....

Since we are doing so fine with Dr Gonzi, why don't you propose the EU to put him on the helm of this special envoy.....he is like Harry Potter lately.

Mr Joe Micallef

Feb 14th, 13:57

Victor Calleja and Joseph Mifsud the answer to your question is obvious to the average person.

Muscat is promising to do better than Gonzi! Amongst other with Joey we will be AAA in no time and irrespective of fuel cost we will have pre 2008 utility rates – now isn’t that why you will be voting him in?

pat muscat

Feb 14th, 14:52

What we need now is a deep pocket and a sound mind something which, at present ,GONZipn cannot provide! Ara kieku il-problemi insolvihom bil-PR u bi slogans tal-finanzi fis-sod, kieku Gonzi m'hawnx bhalu!

Mr Andrew Camilleri

Feb 14th, 17:42

@ E. Gatt: actually the EU should ask Tonio Fenech. According to him, he has worked wonders with the Maltese economy in the middle of the storm ranging around us. And he is a visionary too!

Tony Busuttil

Feb 14th, 11:23

When time comes Dr Muscat will give us his solutions. Dr Muscat is the leader of Opposition he is not bound to give solutions now, but when the time comes before election. Dr Gonzi has no solutions first he ractified ACTA and now he wants to pass laws regardin this. He has no solution for las vote which left his goverment in minority, what solutions he has on utility bills are we going to use gas or heavy fuel oil?

Saviour Aquilina

Feb 14th, 11:21

Don`t John, when J.Muscat be in power Mody`s will give us not AAA but fives AAAAA, because he have every think for every problem that we have. But remember maybe when get the power they say.....WAIT, we find a big HOFRA...LOL. a big EXCUSE, because have nothing to offer, only BLA BLA BLA

Richard Borg

Feb 14th, 11:30

Mela @ Saviou Aquilina -

(...) when J Muscat WILL be in power (...), (...) because he has everything for every problem that we have (...)

"But remember maybe when get the power they say... WAIT"

Imbaghad nifirhu ghax nonfqu miljun fuq edukazzjoni kuljum u ghandna nies li lanqas idea tal-lingwa Ingliza m'ghandhom.

Joseph Brincat

Feb 14th, 11:48

Saviour Aquilina
The first problem is Gonzi PN must
GO > GO > GO, and we will solve the first problem ,
then you just wait PATIENTLY and see my friend !!!!!!!

joseph saliba

Feb 14th, 12:04

@joseph Brincat
Recalling the tale of "The Three Wishes".
1. Go 2003,
2. Go 2008 and
3. Go 2013

Saviour Aquilina

Feb 14th, 15:42

J.Brincat, maybe you are so young that did`t remember the 70s or 80s or maybe that time you left Malta because Malta was only for Korpi . You did`t here what Helen Dalli said 8 days ago? If no sorry you are living in an other world. Can Muscat at least tell us one think of many he said how he will do it. Where are the money paid extra for Cars...Did Muscat forget it because he is not mention it any more. Not me I wait and see but one like you wait and see IF Muscat get the Power, but then TOO LATE.

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