No money grows on trees

Last Sunday, while Lawrence Gonzi and Joseph Muscat were campaigning ahead of the local council elections, people in Athens were taking to the streets their frustration of having to endure yet more austerity measures to prevent their country from facing total collapse. The message was clear: no bailout would be secured unless the Greek Parliament approves the rescue plan.

(Joseph) Muscat’s proposals are cut off from reality...- Hermann Schiavone

The Greeks, like the Italians and other European citizens, are struggling to keep afloat. Italian Prime Minister Mario Monti has just turned down Italy’s bid to host the 2020 Olympic Games in Rome.

The landscape of turmoil-stricken countries is changing the world as we knew it. Jobs considered safe are now being lost. Wage freezes, increased pensionable ages, price hikes of essential commodities, higher tax rates and restructuring of the welfare state have now become the norm. Such changes will impact generations to come.

In the face of the current crisis, millions of Europeans are trying to adjust. The quality of life of many has deteriorated. For those whose luxury was never on the menu, life has become even harder.

Being in charge of a country in these circumstances is not easy. Unpopular decisions have become the order of the day. Leaders across Europe are cautious with their pledges. Populism, a capricious stance in politics, has become even more dangerous and irresponsible.

Promises are now moulded around the minimum harmful impact. “No pain, no gain” has become the accepted cliché. The dire economic situation across the world is leaving little space for politicians to play around with unsustainable promises.

Moody’s downgrade of nine EU member states (including Malta) is a stark reminder that reforms need time to yield results.

Malta has up to now weathered the storm. But we are not living in a bubble. Globalisation and interdependency have increasingly connected state economies. It is therefore futile to portray politics as if this reality were not so.

It is occurring to me that the Leader of Opposition has not yet grasped the undeniable fact that Malta’s economy is exposed to external woes. When consumer confidence plummets, the markets react.

However, Dr Muscat continues to circumvent the reality surrounding our economy and delivers speeches as if problems will be solved with a magic wand once he gets to power. His pledge to reduce utility bills without saying how is a case in point.

Concerns about whether a future Labour government could guarantee the stipends system for post-secondary students are more than justified.

Not only because under the previous Labour Administration an attempt was made to transform stipends to a loan, either because Edward Scicluna has already indicated that that is a sustainable way forward but because Dr Muscat’s pledge to reduce the utility bills once he takes office would have to be funded somehow.

How would he subsidise the bills?

This is the million dollar question which the Labour leader has yet to answer.

What will he sacrifice to fulfil his pledge?

Unless the Labour leader comes up with a concrete and viable answer, students will remain sceptical about his latest pledge that he would secure the present stipends system.

Let’s, for the sake of argument, believe Dr Muscat that the stipends system would not fall victim of a Labour government. Then how will he pay for the utility bills’ subsidies? Will the monies be lifted from education, health or pensions?

Unless an explanation is provided, the scenarios if Labour gets elected are two: (1) cut utility bills but increase taxes (including VAT) to generate the necessary revenue; (2) fall short on the promise and blame the previous government of a ħofra (hole) that prevents the government from delivering.

Whatever his strategy is (if he has one), the electorate is entitled to know.

In the run-up to elections, serious political parties aspiring to lead their country are expected to make credible pledges to the electorate. Serious leaders of parties in opposition are expected not just to criticise their political opponents but also to present the electorate with sustainable alternatives.

So far Dr Muscat is failing to suggest alternatives let alone sustainable ones. Dr Muscat’s proposals are cut off from reality and his election would be a damp squib. Unless money grows on trees.

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