Government wants 'golden rule' entrenched in the Constitution
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The government feels that the 'golden rule' on balanced budgets, which is at the core of the Fiscal Pact agreed by all but two EU member states last week, should be entrenched in the Constitution with a two-thirds majority, Prime Minister Lawrence Gonzi told Parliament this evening.
Reporting on his participation in last week's EU heads of government meeting, Dr Gonzi told the House: "The signing of this treaty was an important step towards the restoration of confidence in the Economic and Monetary Union. This treaty, once it comes into force, should have a profound and long term impact".
That impact, he said, would be in the restoration of stability and confidence, better coordination of economic policies and better governance of the eurozone.
The pact will introduce new fiscal rules for all eurozone member states, forcing them to move towards a balanced budget through an obligation to cut the deficit by at least 0.5 per cent of GDP every year. It also provides for the introduction of automatic sanctions on those member states breaching deficit and debt rules.
Dr Gonzi noted that both sides of the House agreed that the provisions of the Fiscal Pact should be entrenched in the Constitution and he reiterated that once talks on the workings of the pact were concluded in the EU, talks would be started between the government and the opposition on the wording of the Constitutional amendment.
In his statement, Dr Gonzi noted how the focus of last week's meeting was on economic growth and job creation, rather than on some crisis.
The EU, he said, was taking the necessary measures to return to growth. Fiscal consolidation, he said, needed to come about hand in hand with growth and job creation as well as an improvement in competitiveness. This was something which Malta had always advocated.
Through its actions, Dr Gonzi said, the EU was also underscoring responsibility and solidarity - the responsibility of individual states as well as the solidarity among all states towards their common good. The Fiscal Pact was a major step towards the individual responsibility of all states while the European Financial Stability Mechanism had been a major step towards solidarity. Both were tools towards the ultimate aim of ensuring growth and job creation for the benefit of the people of Europe, Dr Gonzi said.
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Joe Brincat-LL.D
Mar 7th 2012, 21:47
I do not agree that this amendment should be entrenched in the Constitution. Why this one ? Although present circumstances may warrant such a "golden rule", it may well be that in exceptional circumstances, this rule has to be broken, for the well-being of the citizens.
What worries me in all these regulatory amendments to the Constitution, whether entrenched or not, there is no Constitutional organ which can decide that a particular decision of the government breaches the Constitution. We have had experience of that sort of interpretation by a Prime Minister, endorsed by the advice of the Attorney General, and that was the end of the story.
We already have a part of the Constitution dealing with how the budget should be allocated. But recently history has shown that a Cabinet may decide to raise the salaries of its members, without any reference to parliament, not to say behind its back.
I do believe that time has come to give to the Constitutional Court or create a Constitutional Review Court to which recourse is available even for ordinary citizens to challenge political decisions which run counter to the Constitution.
Mark. Galea
Mar 7th 2012, 11:11
Many people are talking about indipendent Malta ...
PL has a last chance to take us out of the EU, if the PL leader so wishes ... why does he not take heed of the large number of PL supporters who are euro sceptic ... ?
Joseph Camilleri
Mar 7th 2012, 09:11
So much for independent Malta.
Most of us would agree to the golden rule, but having it imposed from without rather than within, isn't quite the same thing. And it is so very ironic that it is the Nationalist government that "wants" it, considering the humungous accumulated debts year on year Nationalist governments were responsible for.
j brincat
Mar 7th 2012, 09:06
"should be entrenched in the Constitution with a two-thirds majority, Prime Minister Lawrence Gonzi told Parliament this evening"
Before this why doesn't Dr Gonzi pick up some courage and put a bill to the vote first?
(jb)
Mark. Galea
Mar 7th 2012, 11:08
@j brincat
Dr Gonzi is a leader, a very able leader ... and definitely has no wish to emulte those who rush where angels fear to thread ... (ps that is why (M)LP was always in opposition the last 25 years) - hope that they do not do the same with the economy ...
Simon Micallef
Mar 7th 2012, 09:04
The most important Golden rule is DEMOCRACY. Parlament is being run like a village tea shop. Shame on this Government , for being afraid to move forward important legislation. The Golden rule should also include the Prime Minister's blame to his neice (Sliema Mayor) and Sliema candidate, for spreading poison against other Maltese who do not share same ideas. Double faced Prime Minister ,talks sweet and tender and acts opposite way round.
j brincat
Mar 7th 2012, 09:00
The PN should have thought about the golden rule a quarter of century ago when they came to power.
It was the last time that we had a surplus budget. From then on they embarked on a spending spree which left us with an astronomical debt of 4 billion euro. To serve this huge debt we (the taxpayers) have to pay €220 million (220,000,000) out in interest payments PER YEAR!
(jb)
j brincat
Mar 7th 2012, 08:53
@Mark. Galea
"u issa jigi d-dear Magic Wand u isolvi kollox"
Would be a Herculean task to sort out all the sorry mess left behind by GonziPN!
As regards your famous magic wand I have one suggestion. Why don't you hand it to Dr Gonzi in the hope that he brings Dr Franco on his side again? What do you think?
(jb)
Mark. Galea
Mar 7th 2012, 11:04
@j brincat
nifherm l-urgenza li ghandhom il-pensjonanti biex jahtfu s-siggu, imma hemm bzonn li tikkalma ftit ... fl-ahhar mill-ahhar, post il-pensjonanti hu fuq wara, biex ihallu dawk izghar jahdmu, mhux jiffullaw fis-supermarket, forsi jiehdu xi haga tal-ahhar ...
Mark. Galea
Mar 7th 2012, 08:40
u issa jigi d-dear Magic Wand u isolvi kollox.
pat muscat
Mar 7th 2012, 08:22
Wara 25 sena il-PN skopra l-ghaqal......wara li harbat kull m'hemm, bil-power station 'gdida' obsolete, ghada kollha dejn, u fejn the' state of the art hospital'-leaves patients in the corridors by their thousands; a hospital that took 17 years to build, and whose costs went overboard by some 200 million euros! Gabuna fixxa, u ghandhom il-wicc li mill-gdid jghidu' finanzi fis-sod' jigiefieri 'id-dejn se jintefah aktar sakemm il-buzzieqa tinfaqa.....imbaghad iwahhlu f'haddiehor!
Lawrence Fenech
Mar 7th 2012, 08:18
There is only one Golden Rule Gonzi, the back door.
tony abela
Mar 7th 2012, 07:13
Rightly so! GonziPN should now consider that he has always been in breach of reasonable spirit of the Constitution, as although it was not written he is now insisting that it should have been like this all along. After all, common sense says so, too
Wenzu Vella
Mar 7th 2012, 06:38
Would this golden rule be like the NEUTRALITY clause in the constitution with bigger holes than a sieve?
Malta’s debt under consecutive PN governments got so big that it is very close that of Greece. The combined debt of the government and its entities are over the 7 billion euro mark which equates over 17,000 euro per head of population and this my dear brothers and sisters is growing at an alarming rate.
If the PL gets to govern after the next election inheriting the sovereign debt would be like a poison chalice and it would restrict them from carrying out most of their reform programs.
Mr Adrian Zahra
Mar 7th 2012, 05:07
After 25 years of squandering and mounting debts of over 5Billion Euros and nor paying for the most critical assets of its country (the POwer Station) Dr. Gonzi and the PN want us to submit yet again to the political dictate of foreign more powerful countries so that we hopefully get our finances in shape. "Senti Senti da che pulpito vien la predica"
If we want accountability for future administrations let us have laws and structures with which to prosecute negligence, shortsightedness and inadequacy of politicians and in for a starter in the constitution we define criteria for anyone to be eligible as a finance and economy minister.
How about putting in the constitution, that what is promised before the election is actually done and if not done those responsible will be held responsible of omissions with respect to the constitution with ensuing prison terms. Then we will get certainty of conduct in the interest of the country and not in the interest of the party or the Klikka.
Paul Gauci
Mar 7th 2012, 05:03
What cheek! After 25 years of deficits the Nationalist Party starts talking balancing the budget.
Carmel Bugeja
Mar 6th 2012, 23:24
GOLDEN RULE MY FOOT!!!!
John Doe
Mar 6th 2012, 23:01
It is very clear that Dr. Gonzi does not know what he is talking about.
We have been promised the country's accounts on an accruals basis for the last 7 budgets in a row and yet they never materialised. Once we have these blessed accounts on an accruals (rather than on a cash) basis we will know exactly where we staqnd and whether the golden rule will mean flogging ourselves to death.
Today, no one, not even the Ministry of Finance, knows the true extent of our national debt. Any guess is as good (or bad) as any other.
Alfred Grech
Mar 6th 2012, 22:52
A basic common sense rule would be that each government should try very hard to have a balanced budget. Haven't seen one in Malta since Mintoff's time.
rueben pitre
Mar 6th 2012, 22:10
X'naghgglu f'daqqa wahda biex insolvu il-problemi kollha tal-pajjiz.
Dak li ma ghamilniex f'4 snin, ha naghmluh fi ftit xhur qiesna. Hux vera GonziPN?
pat muscat
Mar 6th 2012, 21:15
After 25 years of unbalanced budgets and a mountain of debt Partit Nazzjonalista wants 'golden rule' !
Mr Joseph Carmel Chetcuti
Mar 7th 2012, 06:30
They do have a cheek, don't they. The label 'hypocrite' sits so perfectly with them. Now the PL comes in and has to clear the mess they leave behind. I imagine the first thing the PN should do is to balance the budget by getting rid of the stipends to the children of the rich. Fancy a wealthy country like Australia means-tests assistance to students and Malta? Well, money no problem!
Mr Joseph Carmel Chetcuti
Mar 6th 2012, 21:00
All this nonsense is about constraining a future Labour government. Let GonziPN lead by example.
P Sciberras
Mar 6th 2012, 20:58
Is this backdated?
joshuarti mercieca
Mar 6th 2012, 20:29
Well done
Alexander Brincat
Mar 6th 2012, 20:22
Do you know what GonziPN stands for?
Gonzi's Projections Negative. This is what happened with all PN governments in all years they have been in government in the last 24 years.
GonziPN leads to zero profit generating entities, loss making and overbudget projects and works and an extensive network of corrupt practices.
Alfred Cassar
Mar 6th 2012, 20:42
Mr Brincat, perhaps that's the secret for managing to win election after election for 25 years?
CJohn Zammit
Mar 6th 2012, 20:14
There should be an uproar against this move. The Constitution is about human rights, not financial matters.
Entrenching it in the Constitution will be a travesty, and flies in the face of what the Constitution is all about.
Who says that this fiscal policy is the best for Malta and the welfare of its citizens? For all times to come?
This "Golden Rule" is nothing but fools gold. Say NO.
Paul Giordimaina
Mar 6th 2012, 21:07
What makes you an expert even the opposition is in favour everyone but you.
Mr Peter Korsten
Mar 6th 2012, 21:18
No, a constitution is for laying ground rules and defining your state. Malta actually defines an official state religion; what does that have to do with human rights?
Could you give an example of how constantly spending more money than you earn is the best of Malta and its citizens?
Emma Xerri
Mar 7th 2012, 03:05
I agree with CJohn Zammit
A country should not be run like a business enterprise where financial considerations are given precedence over the human and social elements. Such rigidness will cause real suffering. Imagine a country as a parent, a parent that would rather see his bank book balanced then his children feed and properly taken care of.
This is the neo-con economic model where a country is not made of people but a balance sheet. As long as there is enough money to pay the interest on bogus loans made by the IMF and give bail-outs to the already bloated banking industry, but dish out austerity to the people, all is well.
The only golden rule that should be followed as far as I am concerned is "do unto others as you would have them do to you".
MALCOLM SEYCHELL
Mar 6th 2012, 19:57
Funny coming from Gonzi. He always managed to do a deficit..
Philip Grech
Mar 6th 2012, 19:48
Min irid dawn l-affarijiet bil-miktub, juri li mhux kapaci jimxi jekk ma jsuquxh.
FRANS H SAID
Mar 6th 2012, 19:28
What about the untold million the the Piono project, city gate, etc.? How are these going to affect the debt ratio? What action will be taken so that nothing on this scale of mobey is spent in the future without proper budgeting?
Anthony A. Mifsud
Mar 6th 2012, 19:26
What about the Past Budgets? Is this aGolden rule too? Or is it a one part stratagie to make people forget the six billion Euro that the country or I would say the Goverment accumulated during this regime!
What will the EU do to dissolve this debit ?
When you call for a 2/3rds vote, meaning that you want to off load your problems onto others and later you can walk Scott free, and claiming that you did what's its best with help of the Oposition
U mella mux hekk! Sur Prime.
Tony
Tony Busuttil
Mar 6th 2012, 19:26
so are we going to vote on costitution and leaving other votes on the shelf?
Franco fejn hu???????????
Joseph Brincat
Mar 6th 2012, 19:13
ABOUT TIME , GONZI PN TO HAVE THIS GOLDEN RULE
FOR YOU ( PN ) ALREADY HAD PUT MALTA ON HER
KNEES WITH THE ' DEFICIT ' YOU CREATED I THINK
GOD HAVE HEARD US
marco bebbu
Mar 6th 2012, 21:22
Never any ideas ,all Gonzi knows how do ,is rubber stamp eu laws
Peter Bonnici
Mar 6th 2012, 22:09
He might have heard you, but did He understand you?
T. A. Bartolo
Mar 6th 2012, 18:56
Tick...Tock, Tick...Tock...Hear the knell? Hear it not, for it is the knell that summons our Sovereignty to Europe and sends it to Hell.
Please choose the reason of your report below: