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Government wants 'golden rule' entrenched in the Constitution

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File picture

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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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 ...

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 ...

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!

Alfred Cassar

Mar 6th 2012, 20:42

Mr Brincat, perhaps that's the secret for managing to win election after election for 25 years?

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".

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?

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