The parliamentary troubles faced by the government may have caused uncertainty but the political crisis has not yet had an impact on the economy, according to Public Dialogue Minister Chris Said.
He was speaking after a two-hour long meeting of the Malta Council for Economic and Social Development yesterday that discussed the financial woes afflicting the eurozone and the economic repercussions on Malta.
The social partners also discussed the impact of the political crisis on the economy after the General Workers’ Union asked for it to be put on the agenda.
Dr Said noted that the economy was still performing well and data for the first month of the year showed that unemployment was stable.
“It is not the remit of the MCESD to discuss the political situation but some concerns were raised on its possible economic impact. The political situation does not seem to have had a negative impact yet but the government is alert to solve any difficulties that may arise as a result.” Reflecting the sentiment of employer organisations and most unions, Dr Said described the problems affecting the economy as “difficulties”, insisting that the government was taking nothing for granted despite the positive results.
However, addressing journalists after the meeting, GWU general secretary Tony Zarb said the union’s experience from the shop floor was different to the situation portrayed by employer organisations.
He said that companies with which the union was discussing new collective agreements were delaying the talks and staving off new investments because of the uncertainty caused by the political crisis.
“I hope that employers who are saying that the political crisis is having no effect will not be stingy with employees when we bring forward their demands,” Mr Zarb said.
On a different note, the Union Ħaddiema Magħqudin and the Confederation of Maltese Trade Unions said figures did not show that the political crisis was having an impact on the economy and jobs. They still insisted, however, that the situation must not be allowed to persist.
The president of the Malta Chamber of Commerce, Enterprise and Industry, Tancred Tabone said there was no economic crisis or instability at the moment but businesses faced normal difficulties.
“There is political uncertainty that should not be blown out of proportion to the point that it may lead to an economic crisis. There is no downturn in investment and jobs,” Mr Tabone said, adding the country should be mature enough to hold an election, irrespective of when it was held, without having to go through a crisis.
Earlier, while addressing a press conference on the pavement outside the Mediterranean Conference Centre in Valletta, where the meeting took place, John Bencini, president of Forum, a trade union confederation not represented in the MCESD, urged the government to solve the political problem because it was causing uncertainty.
Mr Bencini, who reiterated Forum’s request to be admitted to the MCESD, said people were constantly talking of an election and this was doing the country no good.
ksansone@timesofmalta.com