Updated: Malta's economy on track - minister
Video: Mark Zammit Cordina
Malta does not need to take any additional measures to continue lowering the deficit, keeping it under the three per cent mark, Finance Minister Tonio Fenech said this afternoon.
Giving his reaction to the European Commission’s forecasts earlier today, the minister Malta would have the sixth largest economic growth and the fifth lowest unemployment rate in the EU.
Although this was very good news for the country, it had to continue to be diligent. However, because of the various measures the government had already launched, the country’s finances were sustainable.
The European Commission said this morning that economic growth this year slowed down when compared to last year but Malta’s economy was still expected to perform better than the euro area average.
The forecasts shows that while the euro-area economy is currently in a mild recession and is expected to contract by -0.3 per cent of GDP by the end of 2012, Malta’s economy is expected to grow by 1.2 per cent of GDP by the end of this year, with a stronger recovery of two per cent forecasted for 2013.
The Commission’s economists also made positive forecasts on other key economic indicators for 2012, with inflation predicted to remain stable at two per cent, lower than the euro area’s (2.4 per cent), and an increase in both exports and imports.
On the other hand, the Commission is forecasting a slow down in tourism activities when compared to last year’s record year and subdued employment growth of 0.6 per cent compared to 2.4 per cent in 2011.
With regards to government finances, while acknowledging Malta’s success in reducing the deficit last year, Malta is this year expected to continue to lower its deficit to 2.6 per cent of GDP. On the other hand, the island’s debt is projected to reach 74.8 per cent by the end of this year – an increase of 2.8 per cent on 2011.
According to the Commission, “the deficit and debt outcomes could be higher, given risks to expenditure from the on-going restructuring of Air Malta, the expected renewal of the public service wage agreement and the financial situation of Enemalta.”
Asked about Enemalta’s debt, Mr Fenech said that the government would create a special purpose vehicle for Enemlata to pay back its debt and return to sustainability.
The long-term plan, he said, was to switch the new Delimara extension to gas.
Asked about the construction industry, the minister said that developers needed to look at the quality of the property they offered.
They should provide quality office space which was needed for online gaming companies, back office companies and other service providers being attracted to Malta.
The industry needs to study better the opportunities out there, he said.
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107 Comments
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mark borg
May 12th 2012, 18:55
Kompli ftahar ministru u flistess hin idejjen fisem il polu malti.....nispera li tigi investigat mil l-ghada li jitla il pl fil gvern u tiehu dak li haqqek.
JOSEPH ABELA
May 12th 2012, 18:05
Mela issa m'hemmx problemi kbar ,ton,rahhas daqxejn petrol, diesel , dwal u ilma u gas ,kif titkellem int u shabek tal-kabinett dejjem kollox ward u zghar,specjalment meta hadtu dik 500 euro fil-gimgha .
Wenzu Vella
May 12th 2012, 08:28
The finance minister is not going to tell you that Malta’s finances are in disarray. To come clean and tell the Maltese people the truth would not be in this administration’s interest especially when he tells you that he is borrowing more and more money in your name.
Malta’s sovereign debt is huge for the size of the economy and it is costing the Maltese tax payers dearly just to service the debt alone. To make things worse this administration borrowed hundreds of millions to give them to Greece. I am sorry you can kiss this money goodbye. Hope I am wrong, not very likely.
Mr Kevin Zammit
May 12th 2012, 07:08
This article sounds positive because it is wrapped neatly with quotes from Tonio Fenech :)
Interspersed for those who want to see one will notice alarm bells:
2.6 deficit - is that still not a deficit!?! since when is a deficit ever a positive thing especially for a country that has now been running deficits for 25 years?
75% debt to GDP and counting
Enemalta and airmalta in a precarious situation
Yes employment is positive and economic growth forecast good but some thing is off if notwithstanding these positive forecasts the island still struggles to pay its bills.
Joe Xuereb
May 11th 2012, 22:49
These reports are all very well but what do they mean to the average joe in the street?
The well-to-do, the I'm-alright-screw-you-jack piccolo borghese will use his anecdotes as backup to what he likes to believe. We all know the type who turns up every day for his/her espresso in some stylish cafe` in or near Queen's Square and wouldn't be seen dead rubbing elbows - and other unmentionables as it's a none too elegant Maltese expression very popular among those bereft of a stiff upper lip, said lippy being so endemic to the piccola borghesia but still terminally 'provinciale' as the Italians would say - with coffee-drinkers in dives near the Opera House that once was. They who wouldn't dream of going to a restaurant for money reasons (ie lack of) and that other killer, Maltese class snobbery. What we in UK describe as 'all fur and no knickers'.
If Malta is doing so well, why does it not opt out of Europe and its euro zone entirely and go it alone. So many other problems would be resolved at a stroke. It's worth a throw for the terminally optimistic because it suits, the terminally gullible more likely. I guess that is the price one pays for being 'all fur and no knickers'.
A Cardona
May 11th 2012, 22:46
I or (the maltese people) would appreciate if Mr.Fenech would explain to us then what is this .... specifically Pg.93.
http://ec.europa.eu/economy_finance/eu/forecasts/2012_spring/mt_en.pdf
Joseph Camilleri
May 11th 2012, 18:51
...quite interesting, was watching a doc on Euronews... Malta is actually doing quite well! ...Euronews often repeats stuff, so, maybe you who are interested and have logical sense, and not just talk rubbish cuz you're a PN or a Labour supporter, this however really makes the Labour party look stupid when they say that Malta is full of debt, economy is VERY bad, doom and gloom all over!
Any way, the statistics are on Euronews TV, so have a look there :)
In all honesty however, I cannot vote for a party, or MOVEMENT who all it wants to do is bring the government, who is performing VERY well, down, just for the sake of one person to be the youngest Maltese Prime Minister.
Not with my vote Joe! Sorry mate! ...and in the next election, I will carefully select those who performed well, and those over 50 years if possible! No cat-walk politics for me!
Joseph Brincat
May 11th 2012, 21:02
Joseph Camilleri
I do not care what the pn & euronews says,I just care of my ( yours ?? ) standard
of living, HAVEN'T GONE DOWN >>> yes or no ???>>>> mine did !!!
Jurgen Farrugia
May 12th 2012, 02:02
@ Joseph Brincat - Thats why the Government is investing in education and attracting more investment in workplaces like ICT and financial services because these jobs render a high sallary thus a better standard of living for that same employee. If we had continued to subsidise Malta shipyards and w&e bills, among others, this wouldn't be possible. Maybe you should do like me and thousands of others and follow up a part time course at MCAST so you'll have a better job thus a better standard of living.
Stanley Iles
May 12th 2012, 07:57
Then according to your reasoning, we should vote Gonzi out. Please decide. You dont want J Muscat because he is young and on the other hand you want to get rid of the 50+ year old parliamentarians.
Manuel Camilleri
May 11th 2012, 18:00
“The Labour Party has transformed itself into a movement, the sole aim of which is to bring down the Nationalist government, with nothing beyond that (u imbaghad naraw).”
- Adrian Vassallo on Bondi+ yesterday evening.
There you go. That's Joseph Muscat's vision for you right there!
Eddy Privitera
May 11th 2012, 18:52
If you base your opinion on what Adrian Vassallo says - the same man who said it is better to live in Iran than in Malta - I sincerely do pity you !
A Trapani
May 12th 2012, 00:29
Well Eddy.... its not the first time the LP compares our standard of living with third world countries such as Zimbabwe...
Stanley Iles
May 12th 2012, 08:02
Did you really listen to this guy.?? He created a world for himself with his euthopic ideas .Now he expects us all to live in .I think its not euronews we should watch but a repetition of what this man said on bondi+ and everybody will see that he doesn't make sense.
Victor Laiviera
May 11th 2012, 17:55
That's OK then. We can take a break and go and watch Arsenal play.
Manuel Camilleri
May 11th 2012, 17:51
why is it that every time there is a positive reaction from the EU about Malta, the PL moaners and prophets of doom react in this way? At least, Gonzi gave Malta a vision. Muscat, up till now, has no vision whatsoever. And if for him vision means bringing the Old to mix with the New Labour, then truly he has a blurred and distorted vision. He has no vision for his party; imagine if he's got one for a Nation.
l vella
May 11th 2012, 18:11
Didnt EFA give us a vision already ? or was that too distorted ?
Eddy Privitera
May 11th 2012, 18:56
God forbids if Dr. Muscat' and the PL have GonziPN's vision - allowing corruption to go on unchecked, priorities upside down, squandering millions upon millions upon uneeded projects, hiding debt etc... No Manuel, this is why the majority of the people are YEARNING for a change !
joseph saliba
May 11th 2012, 19:15
@ Eddy Privitera
Eddy Aren't confusing times, parties and names? You're old enough.
Eddy Privitera
May 11th 2012, 20:06
Joseph Saliba, PL governments have left LM 400 million in Malta's coffers, not 5.5 BILLION EUROS DEBT !!! And set up numerous factories, Air Malta, SEa Malta, Red China Dock, the Shipbuilding, national Stadium, set up the Welfare State, Housing Estates all over Malta and Gozo, Built numerous schools, introduced free education and free health, two-thirds pension for all and so many more social services and rights for workers etc...
pat muscat
May 11th 2012, 20:36
@Joseph Camilleri.
Gonzi's vision up to now was simply to run up a mountain of debt; invent a financial instrument which has ruined Greece, prop up a series of buzzwords-such as 20,000 jobs- which in reality include all promotions(new jobs) street cleaning jobs, roundabout flower pot jobs, replacements of retirement jobs, part-time jobs, precarious jobs, and all the other jobs that pay below the minimum wage!
This great vision in reality produced 81,000 people below the poverty line, and a new class: the working poor! Cheers mate!
Victor Laiviera
May 11th 2012, 21:22
@ Manuel Camilleri
"why is it that every time there is a positive reaction from the EU about Malta, the PL moaners and prophets of doom react in this way?"
Because nine times out of ten it turns out to be a misinterpretation of what was actually said or based on false statistics or creative accounting.
Nazzareno Cortis
May 11th 2012, 17:42
Only those who are well off, believes you!!!!! General public (the majority) don't---no matter the propaganda !!!!!!!!(which is increasing lately),maybe to recover some votes------who knows-----number of fools in Malta decreased a lot!!!!! Keep bluffing----time will give you the real verdict!!
Franky Jones
May 11th 2012, 18:15
The real verdict is in the numbers which the EU has already recognised. Whether you like it or not, the economy has grown. You are one of those people that rather than be happy about such news, would rather see the country go down under a PN government so you can have something to say against it.
The number of fools in Malta has decreased, but surely you're not one of them.
Robert Henry Bugeja
May 11th 2012, 18:29
@Franky....The real verdict will be given by the people of Malta Mr.Jones...soon enough your way of talking will be totally reversed under Labour Gov.
"The number of fools in Malta has decreased, but surely Franky... you're not one of them!". Mur kompli ara Net TV issa!
Eddy Privitera
May 11th 2012, 19:00
Franky Jones, I quite agree with you that the number of fools has decreased. THIS IS WHY PEOPLE WANT A CHANGE ! You know what type of people have increased in number ? - THOSE LIVING IN POVERTY. This too has been confirmed by the EU !!!!!!!
Edgar Azzopardi
May 11th 2012, 17:34
Why does this guy remind me of an ostrich most times- you know the one with the head stuck firmly in the sand!
While the PN is doing its best to give the impression that all is ok and and we are on track, etc etc -- , hoping that the current instability created by Gonzi's punctured vehicle is camouflaged as a speeding Porsche -- most Maltese , including many PN supporters are getting fed up of such statements which they know DO NOT reflect reality and only shout out ' I'M ALRIGHT THANK (!) YOU JACK!!
We all know how keen the PN clique is to be re-elected and get back the E500 increase per week they had to temporarily forfeit, but Gobnzi does not seem to want to test whether there is the same keenness within the electorate.
And since things are so rosy, why is Gonzi afraid to go to the polls and instead, prefer to suffer the humiliation he is being subjected to by Franco Debono's hysterics in parliament.?
Hysterics or not, he PM is being humiliated big time...but it seems he does not mind as long as he clutches firmly at his seat. Kif jghid il Malti : wicchu qaghad!!!!
Jo Camm
May 11th 2012, 17:16
Why should EC speak? PL moaners know more then them.
M Grima
May 11th 2012, 18:32
Actually it was your beloved PN who know more than anyone. Remember a few weeks back when S & P downgraded our credit rating? Remember how Tonio Fenech took them to task for this downgrade, arguing that they got it wrong? Who are the wise guys Mr. Camm?
Charles Abela
May 11th 2012, 17:02
@Angus Black
well you might want to consider the following records as well before committing yourself, otherwise you will also be seen as one of those that always follow the same channel (your own words) :
i. record debt
ii. record in black economy
iii. the increase in perception of corruption and corrupt practices
iv. the highest rate of early school leavers
It is about time that people start calling a spade a spade and stop trying to play politics at every opportunity and at all costs. If the Maltese economy is going to be that good, than one expects that everyone in the chain feels its effect, otherwise these reports will just be a smoke screen set up to increase the feel good sentiment because an election is due.
J Micallef
May 11th 2012, 16:45
...on track....but which track nobody really knows...
Joe Vella
May 11th 2012, 17:31
Certainly not on Joseph Muscat track. If the government had taken Joseph Muscat advise Malta's economy would have headed to a head-on collision.
J Micallef
May 11th 2012, 16:44
Notwithstanding...two members of my family (2 out of 5 ) are still looking for a job...
Paul Cassar
May 11th 2012, 16:41
DEAR MINISTER.................................THE MINISTERS OF GREECE, SPAIN, PORTUGAL, IRELAND, ITALY ALL
SAID SO TO THE LAST JUDGEMENT DAY......................PLEASE SPARE US THEIR DOOM AND TAKE HEED OF THE WRITING ON THE WALL..................................5,000,000,000e debt..
Rocco Camilleri
May 11th 2012, 16:40
Wiehed zgur ma' jistghax jifhem kif meta ahna daqshekk sejrin tajjeb skont il-Ministru tal-Finanzi li id-Dejn Nazzjonali dejjem tiela u fl-istess hin noqghodu nserhu ras in-nies, ghax hdejn haddiehor ahna tajjeb qedien. Nghid jien li statistika dak li tieghi ittik imma in-nies ghandhom mohh suppost. Alla hares familja titmexxa hekk ghax wara l-mewt tal-genituri tghidx kemm ikollhom xi jhallsu l-ulied. Billi wiehed johloq ' Special purpose vehicle' fund, dan kullma tkun qed tghamel u li tnehhi d-dejn minn fuq il-kotba tal-Gvern (biex ma' jidhirx) u titfu fuq haddiehor li xorta jrid jithallas mill-poplu Malti u ghawdxi u zgur b'aktar piz ghax li 'Special purpose vehicle Fund' ikun irid jghamel xi forma ta' profit. Hadd ma' jahdem ghalxejn.
Mr raynond ciancio
May 11th 2012, 16:36
good for malta, even if everybody's pockets are empty, that's the policy
Carmel Xuereb
May 11th 2012, 16:34
Xi musmar iehor jonqosna, mela skond il-ministur sa ftit ilu konna sejrin hazin (ghalhekk kien jghid li konna sejrin tajjeb). Issa naraw la jinbidel il-gvern fl-elezzjoni li jmiss jitla kemm jekk jital l-PN jew il-PL.
l vella
May 11th 2012, 16:25
i wonder....................has anyone here tried bringing up a family on 600/700 euro a month ?
but that doesnt matter as long as our economy is doing well...........
Jonathan Vella
May 11th 2012, 16:40
Since we have almost negligible unemployment, a family on 600/700 a month is a family where only one parent chooses to work. Do you really think you are being realistic to expect to raise a family on one salary?
l vella
May 11th 2012, 17:23
@ Jonathan Vella
and who will take care of the kids while both parents are at work.........maybe they could get a nanny, why not a house help and a cook as well ?
oh our unemployment is negligible, didnt realise, my mistake............
Joseph E Briffa
May 11th 2012, 18:22
l. vella ex lily vella or........ One has to be out of one's mind or completely irresponsible to start a family on that amount........Do you expect people to make good for others' folly?. At least in Malta such income earners get children's allowance, rebates on their energy bills and other assistance such as living with their parents thereby saving rent, but still, unless the husband does a second job or improves his qualifications by undergoing training offered by the state and landing himself a more remunerative job, I can't see how they can possibly cope. It would have been prudent not to start a family in such circumstances.
Eddy Privitera
May 11th 2012, 19:05
Jonathan Vella do you know that in the 70s, YES the husband could raise a family with one salary, and have something at the end of the month to put in the bank !
Eddy Privitera
May 11th 2012, 19:07
How about the thousands who ONLY HAVE ONE JOB - A PART -TIME JOB ??? Is this the way how Malta is progressing economically ????
Joseph Brincat
May 11th 2012, 16:24
A million dollar question ????
IF our economy is so good then why our
standard of living what dawn , dawn dawn ???????
Franky Jones
May 11th 2012, 18:18
First of all, "down".
If oil prices rise worldwide, they rise for everyone. We don't live in a bubble. Unfortunately oil prices have a big effect on the price of everything else. Everything needs to be transported some way or another, and the way to do that presently is to burn fossil fuels.
Joseph E Briffa
May 11th 2012, 18:25
Dawn comes in the early morning Joseph Brincat. What's the connection?
Joseph Brincat
May 11th 2012, 19:53
Franky Jones & Joseph E Briffa
Ok :- down instead of (dawn) You still haven't CONVINCED ME.
That is if the economy is that good why our standard of living is DOWN DOWN DOWN ???
pat muscat
May 11th 2012, 16:17
Only Tonio Fenech is in euphoria; whilst most business men/ women, and other middle class professionals are turning their heads out trying to figure out how to respond to the lack of money in the middle of the market!
Lawrence Fenech
May 11th 2012, 16:12
Ofcourse Malta economy on track 6 billion dept, 600,000 euros interest per diem, power station 4 million debt plus penalty per day, not one cent in the box, on track straight downwards imma. Who is believing you Tonio.
Eddy Privitera
May 11th 2012, 15:57
Tonio Fenech, the proof of the pudding is in the eating ! Whatever you may predict on the economy of Malta's financial situation, deficits etc.. must be taken, not with a pinch but with a bucketful of salt , considering your past prophecies !
Angus Black
May 11th 2012, 16:12
Not too bad a record, Eddy not bad at all.
Beats Labour's forecasts of doom and gloom and past performances when in government as recently as 14 years ago. Record deficits when price of oil was $12 a barrel, increased taxes across the board and introduction of new ones on doctors' certificates, sewer tax, poll tax, switching student stipends to loans, removal of VAT and replaced by a higher CET, etc. Those actually were not forecasts but typical examples of the LP's hidden agenda, copies of which Joseph is keeping 'close to his chest'.
Be more original Eddy.
E. Azzopardi
May 11th 2012, 16:25
Many citizens are angry at this government and with reason, but can a human being be so negative? I always believed that God created man with a lot of optimism in him, but I suppose there are exceptions.
Eddy Privitera
May 11th 2012, 19:15
What 'Poll Tax" are you dreaming about Angus ? Or the "Sewer Tax" ? Those are now in the water and electricity bills we are receiving ! By the way, you will know what Joseph MUscat is keeping close to his chest AS SOON AS YOUR LAWRENCE PLUCKS UP ENOUGH COURAGE T CALL THE ELECTION !
Charles Abela
May 11th 2012, 15:18
To be precise the commissioner should have rephrased his statement to "Based on the data and statistics supplied by the Maltese government, Malta's economy is to perform above euro-area average, this year".
Cause if the economy is going so well:
Why did the finance minister set up this SVP for the City Gate + theater project? Can't the country afford such an expense, even though it might have been badly planned?
Why does the number of individuals working part-time continue to increase from one period to the next?
Why do individuals on low income wages and pensioners, continue to complain that they are finding it extremely difficult to make ends meet?
Why are businesses complaining about the continuous decrease in money spending by the population in general?
Surely it is not because we Maltese tend to "gemgem" a lot!!
Angus Black
May 11th 2012, 16:05
Charles, if one doubts the NSO figures, why would he believe Labour's doom and gloom? Now it seems that not only the NSO is Labour's target but also the experts at Eurostat.
If you read how the SPV works, then you would have answered your own question.
The number of part-timers continue to increase, precisely because SMEs are in an expansion mode.
Individuals earning a low -middle income always seem to complain no matter what. It's Malta's hobby, after all. They should watch another TV channel than the one they glue their eyes on and see what real complaints consist of like in Spain, Greece, Britain, Portugal and others.
Business which complain about a decrease in spending are probably the ones which want to get rich overnight, offer uncompetitive prices and inferior services. Their complaints are unfounded because how do you reconcile the fact that imports are higher when consumers are spending less?
And to answer your first question last, Malta's economy has been performing above the eurozone average for some time now and some markers prove it, Low unemployment, highest number of full-timers, low inflation, record car and home ownership, record number taking vacations abroad, packed restaurants and other indicators too many to list here.
m. borg (slm)
May 11th 2012, 15:10
"On the other hand, the Commission is forecasting a slow down in tourism activities when compared to last year’s record year and subdued employment growth of 0.6 per cent compared to 2.4 per cent in 2011."
Now that is an eye opener, Last year although it was a record in number of arriving tourists the number of bed nights decreased and forecasting a slow down in this sector is like a sick person not responding to his medication but instead his health is deteriorating.
....and how about the employment growth subdued to 0.6% from a supposedly 2% in 2011.
m. borg (slm)
May 11th 2012, 15:04
'Malta’s economy to perform above euro-area average this year'
Depends how good the euro-average is or was, and as far as we know EU is not doing so good, look at the strenght of the euro.
One can play with words and fit them to his argument accordingly. Like any other man in the street all I care about is not rethoric but what I find in my pockets when I need to pay exhorbitant fees and cost of living.
Jessica Smith
May 11th 2012, 15:18
Here's your answer
http://www.washingtonpost.com/business/markets/eu-predicts-03-percent-eurozone-economic-contraction-in-2012/2012/05/11/gIQANfqXHU_story.html
EU predicts 0.3 percent eurozone economic contraction in 2012, says bloc in ‘mild recession’
http://www.bbc.co.uk/news/business-18033974
Eurozone economy to shrink by 0.3%, EU Commission says
From the EU website
http://europa.eu/rapid/pressReleasesAction.do?reference=MEX/12/0511&format=HTML&aged=0&language=EN&guiLanguage=en
Spring forecast 2012-13: towards a slow recovery
Brussels, 11 May 2012 - Following the output contraction in late 2011, the EU economy is estimated to be currently in a mild recession. While uncertainty about economic and financial prospects remains high, strong policy actions and major advancements in the EU institutional framework have brought about an easing of financial market tensions in the beginning of 2012 and a tentative stabilisation of confidence, expected to further strengthen over the forecast period. Together with an expected acceleration in global growth, the recovery is forecast to set in slowly from the second half of the year on. The picture presented in the interim forecast in February is broadly confirmed for 2012, with real GDP projected to stagnate in the EU and to contract by -0.3% in the euro area. For 2013, growth is forecast at 1.3% in the EU and 1.0% in the euro area. Unemployment is expected to remain high at 10% in the EU and 11% in the euro area over the forecast period. Inflation is set to moderate gradually as the impact of higher oil prices and tax increases fades away. Fiscal consolidation is forecast to progress, with public deficits in 2013 declining to 3.3% in the EU and just below 3% in the euro area. The economic situation differs considerably across Member States, also in view of the ongoing adjustment to the large disparities in external positions and structural conditions that have come to the fore over the last years........
Eddy Privitera
May 11th 2012, 16:00
Even the EU used to believe and quote figures which the Greek government used to send to Brussels. Look what it has got Greece and the EU into now !
Emma Xerri
May 11th 2012, 14:21
The economy can perform well but the in the new economic model we are using, this does not automatically mean that the average worker is doing any better. Everyone knows that with the new type of Capitalism that has been hoisted on us, it is perfectly feasible for the economy to do well, with the top few percent of the population pocketing the wealth, while the conditions for the average citizens deteriorate.
This is called the 'trickle down' effect economy, the premise being that if you let the top richest people gobble up all the weatlh created, we somehow will all be better because the wealth is sure to 'trickle' down like rain on the rest of us schmoos. It does not happen. Unless government is there to make sure that the wealth that is created is distributed fairly throughout all members of society, the rich just get richer and greedier.
And to be sure, governments are no longer performing this function and as per IMF instructions, have cut taxes to business, cut social services and health and education spending, water-down work legislation and overlook increasing poverty, and implemented austerity measures, coupled with giving tax money (incentives) to business or bailing out private business with taxpayers money.
So yes, on the books it can very well look lke the economy is performing very well but only for the very few at the top of the pyramid.
Angus Black
May 11th 2012, 15:21
Ms Scerri, "This is called the 'trickle down' effect economy" is incorrect. The ''trickle down' AFFECTS the economy in that if the trickle down translates into more money in the consumers' pockets then the consumer has more buying power. If, as you state, the top percentage 'gobble up all the wealth created', then there is little concern for the 'trickle down 'effect sine there will be none.
Statistics (if you believe Eurostat or the NSO) show otherwise. Imports do not grow unless the consumer demands more, buys more and has enough money in its pockets to buy consumer goods.
If the rich become richer, is because the 'rich' do not sit on their fanny and just watch their wealth grow.
The 'schmoos' complain and are envious of the 'rich' while they do not avail themselves of many schemes designed to improve one's lot in life and enhance their education level.
I don't know where you're coming from Ms Scerri, but your second paragraph gives me a clue. I will only pick up on one statement you made, respecting space in this paper and which goes; "...bailing out private business with taxpayers money". My question to you is, "Whose money would have been used had the employees of 'private businesses' were let go and joined the unemployment line"?
Just what gain is there to be made by denying the mathematical calculations made by top experts in the field? What kind of stimulus will you create by forecasting doom and gloom discouraging the very sector of the population from spending just in case you may be right? Is this a hidden plan to stagnate spending, putting more pressure on the economy you are so concerned about?
Emma Xerri
May 13th 2012, 01:28
@Angus Black
The 'trickle down' effect has not been shown to happen at all. Proof is that statistics year in and year out prove that the very rich are getting even richer and that poverty is increasing even in the first-world (US and now in Europe), which started to follow the same economic policies.
The rich become richer because they have the power to design laws to suit their class and buy political infuence. Yes the rich certainly do not sit on their fannies, they are busy lobbying to dismantle consumer protection, Unions and workers' associations and international tariffs and merging into conglomerates to strengthen their world position, whilst at the same time the corporate media tells the rest of us that the cool way to be is an individual and this has created the 'me' generation (thus assuring that the general public will remain divided and can never mount a serious threat to corporate hegenomy), with everyone hooked into their ipod and head down texting and twittering.
And in regards to bailing out private business, let me tell you something. My husband worked with General Motors who was just given billions of taxpayer dollars as bailout and incentives. What did they do with the money? They got the workers to pack the machinery and the labels were addressed to China - the workers were then layed off and the plants closed and workers layed off. (Bailouts and incentives are given without any obligations to create or keep one single job). The bail out money was used to build new factories abroad and kill local industry, all with taxpayers money. That sir is the truth and reality of incentives to industry.
An in Malta I have no illusions that the government is not following on the same blueprint.
And getting back to the original topic of the story, I reiterate that just because the economy looks to be performing well, it does not necessary follow that the average person is doing well also. For example the financial industry or gaming industry could be skewering the results so that whilst the GDP looks impressive, in actual fact little of that money came into the pockets of the average worker. In fact the average workers real wages have decreased steadily in most Western countries. At the same time, during this period, the wealthy have seen their wealth increase in leaps and bounds.
For example Statistic Canada has issued reports for the last 30 years, which shows that the country has experienced unprecedented economic growth, however the gap between the rich and poor has increased and widened and the amount and level of poverty has increased, the middle class shrunk and their buying power has severly decreased and most of the gains have been made by the top richest 1% of the population.
This is not a matter of envy of the rich but of seeking social justice and a more equitable system that does not have a few winners on top and leaves everyone else (the losers) behind.
D. Xerri
May 11th 2012, 14:17
'Malta’s economy to perform above euro-area average this year'
Oh Good ! Then Dear Mr Prime Minister why dont You GIVE BACK those leave days that occur on a Saturday or Sunday to each and every employee - If I remember well that was to be a measure for 3 or 4 years - pero Intogbot mill-Employers u baqghet ghaddejja u dawk il-leave days insterqu minn halq il-haddiem u l-familja tieghu darba ghall-Dejjem bil-Barka tal-Gvern ~!
Hadd donnu m`ghadu jsemmihom illum - kemm ghandna memorja qasira fejn irridu hux !
m. borg (slm)
May 11th 2012, 15:00
Mhux kompitu tal-PL li jerga jsemmiehom, darbtejn kien wieghed li jerga jinghataw u darbtejn il-poplu ma accettax .
Allura kif tippretendi li l-PL jwieghed dak li l-poplu ghal darba, darbtejn irrifjuta.
Michael Seychell
May 11th 2012, 16:35
Mr/Ms D. Xerri Just a short comment on Hollidays falling on weekends - You must either have not lived in Mintof's time or else you have a short memory.
For your information Mintoff had reduced a number of Public Holidays - if I am not mistaken six in number - including amongst these the feast of the Virgin Mary commonly known as 'Il-Kuncissjoni' and upon being elected in 1987 Dr. Fenech Adami gave these holidays back to the workers.
Michael Seychell Tal-Pieta
Mario Camilleri
May 11th 2012, 17:02
Mr. Seychell and for your information if you said that in 1987 Dr. Fenech Adami gave those holidays back to the workers, who took them back from the workers not so many years ago???
Shaun Camilleri
May 11th 2012, 17:29
@ Michael Seychell
The holidays so called taken away by mintoff were added with the annual leave.
The holidays which were put on hold due to competitiveness by gonzi were taken away from our annual leave, and the temporary measure seems permanent, even though the economy is doing so good, that we can spend millions of euro on a bridge to nowhere
Eddy Privitera
May 11th 2012, 19:17
Michael, you conveniently forgot to add, that Mintoff introduced the 5 day working week, thus giving employees 52 extra days off. And if they worked on those days, they get overtime or double or triple pay for those days !!!
Alex Falzon
May 11th 2012, 14:12
Li tisma kandidati tal-PL hadd wara hadd jitkellmu fuq in-negattivita li dan il-pajjiz ghandu allura l-poplu Malti... tibda tahseb illi Malta huwa post tat-tielet dinja... xejn tajjeb. Minn naha l-ohra hadd wara hadd tisma lil PM illi jippriedka l-investiment f'kull qasam, xoghol gdid u ahjar, stabilita u kliem pozittiv u ta' tifhir lil kull cittadin... bla ma trid tghid il-PM ghandu fiducja fil-kapacitajiet taghna. B'dan kollu xorta wahda ghad fadal xi jsir u nemmen illi bi tmexxija ghaqlija nkompli niksbu rizultati aqwa.
Eddy Privitera
May 11th 2012, 16:10
"B'dan kollu xorta nemmen li ghad fadal xi jsir u nemmen ILLI BI TMEXXIJA GHAQLIJA.........". Ezatt, DIK LI GHANDNA BZONN - TMEXXIJA GHAQLIJA ! Kif wiehed jista jiddiskrivi t-tmexxija ta' GonziPN bhala " ghaqlija ", jekk il-prijoritajiet huma ta' taht fuq ? X'ghaqal kien li tibni pont li ma jwassal imkien, semplicemet biex xi hadd ifettillu jmur fuqu biex joqghod ihares lejn il-port il-kbir, meta l-aqwa veduta tal-port trid taraha mill-Barrakka ta' Fuq ?!!! Jew x'ghaqal kien hemm li tibni parlament gdid li se jkompli jghabbi lill-pajjizna bli spejjez ghax ma fih introjtu ta' xejn izda biss spejjez ? X'ghaqal kien hemm li tivvinta l-SPV biex taparsi tiffinanzja l-bini ta' dan il-parlament bi flus li SE TITLEF MIL-KERA TAL-AJRUPORT U L-MOLLIJIT TAL-PORT IL-KBIR ?? Nista nibqa sejjer. Ghalhekk hemm bzonn il-BIDLA halli jkollna tmexxija GHAQLIJA !!!!
Mark Caruana
May 11th 2012, 14:08
Imma meta ha nieqfu nitkellmu b'mod partiggjan! Ghalfejn irridu ninfirdu fuq kollox. Ghaliex ma nitkellmux b'vuci wahda ghal pajjiz. Jekk Gvern huwa ta liema kulur hu mar tajjeb jew mar hazin irridu nammetuwa. Il pajjiz huwa taghna lkoll. Ahna pajjiz zghir u uniku u li noqghodu nithambqu bejnietna min ghandu tort u min m'ghandux hadd minn barra mhux se jaghti kazna. Il-pressjoni ghandha ssir fuq il mexxejja taghna li dawn kemm jistghu jaghmlu pressjoni halli ahna ma nkunux ta forcina ghal xi erba galantomi minn pajjiz iehor li ghamlu qassata u tefghu L-Ewropa f'abiss bhal dan. Nieqfu nkunu qiesna qabda ghoggiela li jigbdu l-istess karettun!
Joseph Camilleri
May 11th 2012, 13:54
A good reason why to vote Labour...! U MHUX HEKK!!!
Joe Vella
May 11th 2012, 13:48
Certifikat iehor ghal Malta. Meta il Gloom and Doom crowd ha xummu il cafe. Wara l'ellezjoni, imbghaad jiedu x'gara. Ghala tliftnija.
Victor Vella
May 11th 2012, 13:40
Of course 'Malta’s economy to perform above euro-area average this year'. By increasing precarious work; increasing real unemployment; increasing part time jobs; and increasing inferior jobs conditions and pay below the minimum wage. These are the new military corps called forced modern slavery under GonziPN.
Mr Edward Caruana Galizia
May 11th 2012, 14:10
Oslo Rehn. Does that name sounds remotely Maltese to you? No, it doesn't. Because the man is not Maltese. Not only is he not Maltese but he also doesn't work for the PN. So what he says is totally unbiased information which is in no way influenced by the parochial politics of Malta.
So what on Earth are you on about? Forced slavery? Do you even know what that means? Increasing real unemployment? As opposed to what exactly- fake unemployment?
The world is in recession. There is an entire generation in the Uk that are now facing a life of stacking shelves at tesco just so that they can receive their unemployment benefits. They are the lucky ones. Those who are around 50 years old and have lost their jobs will never work again.
Life in Malta may be tough at the moment, but it is nothing compared to life in other countries around the world where they are truly suffering.
Mr Edward Caruana Galizia
May 11th 2012, 15:01
Sorry, that should read Olli Rehn* .
Eddy Privitera
May 11th 2012, 16:20
Qabel kienu jghidulna: " ARA DAN U DAK IL-PAJJIZ KEMM SEJRIN TAJJEB FL-UE". Illum jghidulna: " ARA DAN JEW DAK IL-PAJJIZ KEMM SEJRIN HAZIN FL-UE, IZDA AHNA M'AHNIEX HAZIN DAQSHOM " !!!! L-aktar pajjizi li sejrin hazin bhal issa huma dawk fl-UE. Anki fl-Argentina, li tghidx kemm ghaddiet minn krizi enormi 12 il-sena ilu, illum sejra ferm ahjar minn certi stati membri fl-UE !
carmel parnis
May 11th 2012, 16:37
Sur Privitera rigward l ARGENTINA staqqsi lil dawk il mijiet ta Maltin li nsterqulhom l flus mil gvern Argentin u wara tkellem kemm sejrin tajjeb l; Argentina Min jaf kieku il gvern MALTI jghamel l istess oqghod ghal ilsienek
Eddy Privitera
May 11th 2012, 19:20
Sur Parnis, jien qieghed nitkellem fuq l-Argentina tal-lum mhux ta' dak iz-zmien ! U semmejt l-Argentina biex nuri li huma l-pajjizi fl-UE l-aktar li sejrin hazin , mhux kif kienu pingewielna !!!
anthony sultana
May 11th 2012, 13:31
When one talk can say what ever it pleases him,But look at what is happening now,people lineing up to collect some food left over from some European rich people.Cars are too expencesive,so we have to settile with second hand cars, some people are eating just pasta and chicken wings to servive,while few people have so much money,that they don't know what to do with it.and the list goes on.....................................
Mr Edward Caruana Galizia
May 11th 2012, 14:16
If a car is expensive, get the bus. The price of petrol has little to do with the government. I live in the UK at the moment and I also survive on pasta and fruit.
With the PL in government there will probably be more people asking for free food from the EU because the PL have no actual plans to run the country. We will be saddled with a bunch of malcontents who just want to be in power, but do not desire to do much good with it.
Ms Rudi Mcbeal
May 11th 2012, 16:07
Spot on, Mr Caruana Galizia!
It seems that to Mr Sultana poverty means not being able to buy brand new cars. My, oh my - some people never cease to amaze me!
Some people are eating pasta and chicken wings to survive? The truth is that some people are too darn lazy to dedicate some time to cook nutritious and healthy meals, which most of the time cost much less than one thinks. And what is wrong with pasta, may I ask? Use wholegrain and serve or garnish with some simple, unexpensive - but - nevertheless - healthy and delicious sauces and accompaniments, and you'll be more than fine, don't worry.
I wonder how come I always notice people queuing outside most take-away outlets all over the island when cooking something at home usually costs way less and is much healthier than pastizzi, pies, greasy pizzas and kebabs.
Then they grumble...
M Carabott
May 12th 2012, 12:06
I can give you another list:
Go to any McDonalds outlet at any time of the day, and it's nearly always full of people.
Ask any travel agent how many Maltese still go on holidays in these troubled times and you'll see how bad off we really are.
Go to any of the popular restaurants for lunch, on a weekday mind you, and you'll have to wait for a table.
Where are the people who go to these organised parties and concerts getting the money from? What do they do? Not eat pasta and chicken wings for a couple of days to save up the money for these extra expenses?
I apologise for taking a ridiculous and rhetorical tone but your argument asks for it.
People aren't blind, they just wish to be.
Pasta and chicken wings... please...
Mark Caruana
May 11th 2012, 13:20
At this point Malta's economy has little significance on the value of what we're getting in our pockets. The major concern is Eurozone and EU. It is good that our country has a positive performance for its reputation amongst the group BUT now the situation has changed and the people better start thinking on a macro level. The unstable value of the Euro is hitting our pockets negatively and making us pay more for basic necessities. Our governments should put pressure so that irresponsible countries should be chucked out of the group. We cannot make good for big countries who made tax credits to citizens beyond their means. No government in Malta has ever behaved that way politics apart. Citizens of hard working countries are feeling betrayed and extorted when they are asked to pay for such consequences. Europe has more than 35% of the world's wealth and it is facing a crises due to irresponsible politicians of certain countries!
Peter Zahra
May 11th 2012, 13:18
Imbghat tisma l Labour party, is super one u l bella kumpanija fuq il programm ta Joe Grima (Inkontri/Ipokriti) jghidu li l pajjiz fallut, hawn hafna faqqar u kulhadd mejjet bil guh, bla xoghol, pajjiz imkisser, ekonmija stagnata, incertezza, etc etc...!!!.
Jekk xi hadd jrid konferma ta kemm l pajjiz fallut, ara jipruvax jmur jiekol f'xi ristorant minghajr booking ghal Mother's Day u malajr jinduna li dawn huma fully booked !! Sahansitra whud minhom kienu fullybooked min 3 gimghat qabel u aktar. Dan l ezpemju zghir jfisser hafna ghal min jrid jinduna li l stampa li qed jpingu l Labour party hi totalment bil maqlub....
Joseph Camilleri
May 11th 2012, 13:56
I can confirm that... Hilton fully booked, westin fully booked and Excelcior fully booked... at least I managed to get a table for 6 for next Sunday at Vivaldi!! ...imbghad jigu tal Labour jighdu li hawn ricessjoni!!!
Louis Muscat
May 11th 2012, 13:56
M'hemmx ghalfejn ikun Mother's Day, ghax kull narta Hadd gtried tibukja qabel u kull fejn tmur mimli bill familji Maltin
John Borg
May 11th 2012, 14:26
Soon we will start hearing Hansford on TVM the same as Inkontri ...
charles fenech
May 11th 2012, 13:15
Par idejn sodi?
O Kassar
May 11th 2012, 13:14
When I hear these comments coming from unbiased professional people in the IMF, or as in this case from the Commission, I continue to realize how Malta is really performing well, quite different from the way certain media tries to depict it. And I think, being floater or whatever, it would be really madness to change the people behind this success for people who don't have the courage to disclose their plans and who have in the past proved they are incompetent. And this just for the sake of change, "imbasta nnehhu l-PN minn hemm u mbaghad x'jigri wara naraw" as we came to know through Dr Adrian Vassallo's interview on Bondi+. Precaution is better than cure.
Oliver Grech
May 11th 2012, 12:46
Another success story of this government....another success to judge the PM not by what he says but what he achieves.
George Azzopardi
May 11th 2012, 13:13
wow impressed!!
Mike Abbot
May 11th 2012, 12:44
and next year we'll vote in a government that has zero ideas or experience about maintaining growth in this sort of climate. Just when we need stability, we'll screw ourselves. It's not like i'm a fan of PN, but the alternative is far less appealing.
Mano' Xerri
May 11th 2012, 12:41
Oh here we go again Malta is doing better then anyone else in the eu, we must be God's gift to europe for a small country, then why do we still have POVERTY* IN THE COUNTRY. many young families that cannot afford to pay the utility biils and some even have have 2 jobs to make ends meet. It must be closer to election time i suppose, so i believe all that when i see it whenever that will be....... dooms day probably.
S. Zammit
May 11th 2012, 13:07
Mr. Xerri some have 2 jobs in Malta, others in Europe have none.....That's where the poverty is.
Peter Zahra
May 11th 2012, 13:25
@ Mano Xerri,
Go and ask the Spanish, the Italians and the Greeks whether they have 2 jobs to sustain their living ?? For your info, every one out of five in Spain is unemployed !!!
Joseph Camilleri
May 11th 2012, 14:01
Ever heard of poverty in the mind? Well dear Mr Xerri, that is the kind of poverty there is in Malta! Stupid people who want to do nothing, don't want to work, and live off MY taxes, or as they are better known of as SOCIAL BENEFITS, who expect to have a good life without working! Gib l'hawn u tiehux l'hemm... jew b'xejn jew xejn!!
A typical example is the artice on The Times some weeks ago, where a man, with some 6 children (correct me if wrong) has a wife and life in 4 rooms in Valletta! He doesn't want to work but he wants a decent home etc etc... If he works for it, then he will have a decent home...
That is why this guy is poor... oh and by the way, not to mention the money these 'poor' people spend on lotteries etc ...alcahol maybe? ...poor in mind, that's the way to put in Mr Xerri! U jekk inti thallas it taxxi BHALI, ibqa tkellem hekk u hu gost ghamel tajjeb ghal dawn in nies, li huma ir rovina tas socjeta u economija f'pajjizna!
Joseph E Briffa
May 11th 2012, 14:20
Mario Scerri...people having second jobs proves that there are job opportunities. People who have second jobs are willing to make up for the fact that they have low skills or low qualifications through no fault of anyone but themselves. Better to have two low -paid jobs rather than moan and lie back and expect others to prop them up which unfortunately Labour continues to advise them to do, in line with the Mintoffian maxim, min m'ghandux jghix ma' min ghandu.
Gordon Galea
May 11th 2012, 14:33
Well said Joseph Camilleri
Eddy Privitera
May 11th 2012, 20:18
Mela l-U qieghda tigdeb meta qalet li ghandna il-fuq minn 20 fil-mija jghixu fil faqar 1 Il- Caritas ukoll qieghda tigdeb meta jsemmu l-faqar li hawn inkluzi it-tfal ! Bilfors qieghed tghix f'dinja tal-holm u mhux f'Malta !!!
Charles Cremona
May 11th 2012, 12:26
How do you explain that Mr Muscat ?
Please choose the reason of your report below: