EU statistics show government economic projections are wrong - Muscat
Labour leader Joseph Muscat said today that EU economic projections for Malta, issued yesterday, showed that the government's own growth projections were wrong, and therefore, the PN's electoral promises could not be honoured unless taxes were raised.
He was speaking at a conference by the Ideat Foundation on the theme “For a New Progressive Europe”.
The Labour leader said the the PN governemnt had projected last year's economic growth at 1.2%, but the European Commission said it was actually 1%.
The government was projecting a growth rate of 2.3% this year, but the Commission's projection was of 1.5%.
For next year, the government was projecting growth of 2.4%, but the commission was saying 2%.
Dr Muscat said the PL's electoral promises were based on the statistics of the EU and the International Monetary Fund and they were therefore realistic.
He noted that the PL's plans entailed less spending by the government, thus ensuring that no new burdens were imposed on the economy.
PN REACTION
In a reaction, the PN said the Labour leader had made a wrong analysis of the economic projections.
Furthermore, the PN economic forecasts were based on the schemes and incentives which the party was promising to introduce to boost economic growth.
These included incentives to industry, tourism and SMEs as well as tax cuts. These incentives were not included in the EU's calculations.
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Kevin Bonnici
Feb 24th, 08:26
josephmuscat.com fejn jrid hu biss jza l istatistika tal Kummissjoni Ewropea. Ghal skopijiet partigjani biss.
Xebgha jghid li jrid jaghmel lil Malta, l-aqwa fl Ewropa? Issa waqaf ghax fl ahhar stenbah li MALTA DIGA QIEGHDA l AHJAR FL EWROPA...
aqraw ir rapport kollu u iggudikaw intom hbieb...
Michael Tabone
Feb 24th, 01:57
I'm sorry but I couldn't help burst out laughing in a quiet library at 0:55 when I read this. I couldn't believe what i was reading in this article.
Is it me, am I missing something, or are those growth numbers incredible? I mean after everything the EU has been through, the fact that Malta is getting increased growth figures of between 1% and 2% is a big thing and very good for Malta...
Joe Grech
Feb 23rd, 23:59
As usual the PN sidesteps and says the PN forecasts were based on the schemes and incentives which the party is promising to boost economic growth.
Such as the giving of tablets to illiterate pupils in government schools?
And the giving of a free holiday to youths to go and visit an EU country?
Or the giving of hundreds of euros to 78 yr olds?
Who can still take GonziPN seriously?
Paul Gauci
Feb 23rd, 23:07
Can Gonzi be trusted on economic matters? In 2008 he promised us that he will balance the books by 2010 and deliver a surplus which never materialised.
Throughout this 7 week electoral campaign he promised us again to reach a surplus, first by 2015, then 2016 and finally stating that he will reach it by 2017.
Can we trust him again?
Charles Massa
Feb 23rd, 21:42
Dr Muscat, ma tafx li gejja l elezzjoni. U qabel kull elezzjoni kollox imur tajjeb. imma tal PN qartt ma zammew mal projections tagghom u meta ma jilhqux it targets jaraw f min se jwahhlu
DD Galea
Feb 23rd, 20:56
honestly the Gonzi goverment had never got his financial projections right.....so i have my doubts
JOHAN MICALLEF
Feb 23rd, 20:20
il pjan ta gonzipn huwa car,l ewwel riedu jattakaw lil anglu farrugia meta kien puluzija,imbad zammew 2 tapes wiehed fuq toni zarb u iehor fuq toni abela u issa jmiss joseph muscat ghal ahhar 15 il gurnata!!meta ma jkollokx argumenti u hafna affarijiet xtahbi taqa fuq l attakki personal!!politika mahmuga min gonzi pn
Mr Joe Micallef
Feb 23rd, 20:14
Cyprus Joe sells himself as an economist (which he is not), but can't even make heads or tails of the temporal basis of any projections - the basis of any analysis and forecasts.
Incredible! No wonder he was wrong on EU, the EURO and suggesting the Cypriot economic model.
Carmel J. Caruana
Feb 24th, 21:05
Well Dr Muscat is certainly a better economist that Dr Gonzi.
I voted for the EU for social reasons but economically the EU and the Euro have not been good for us (we have ended up 5000 million in debt and still rising)
The Cypriot model is good and Cypriots have a better standard of living than us. The only mistake that they made was that for historical reasons they invested their money in Greece
S P Bellizzi
Feb 23rd, 19:59
@ Mr. Eddie Privitera
Further to your comment below - out of curiosity - and I am not interested in any political party or motif – who exactly is this “private company”, that you mention? [Please excuse me for my lack of local, political knowledge]
m farrugia
Feb 23rd, 18:59
JM promises less spending on what?free education,on aid to manufacturing and smes saving thousands of jobs,on redundancy &retierment sums to drydocks & airmalta employees in particular,on massive projects(roads, public spaces, restoration projects)that malta has never seen before which have employed thousands,on first class free healthcare(ask those who underwent lifesaving operations)god help us
Mr Joseph Azzopardi
Feb 23rd, 19:55
The PL's proposals cost around EUR735m, the PN is spending EUR1.1bn (because the latter assume that Malta will grow by unrealistic rates).
A. Sultana
Feb 23rd, 20:52
Joseph Azzopardi - It has already been proved that MLP's costings are incorrect. PN's costings are higher on less promises and are proven to be more realistic. Moreover if you cared to look at PN's costings breakdown (which I doubt you did) PN have been very conservative in their economic growth to expenditure balance.
I suggest you see for yourself before believing everything Dr. Muscat says.
A Spiteri
Feb 23rd, 18:47
Ara min irid jitkellem fuq EU!!! Int ivuttajt kontra EU u ridna naghmlu bhalek. Dan li ridna nghamlu bhall Cipru. Missu semma minhekk il-Prim Ministru Gonzi. Shame on you, Guz.
George Grech
Feb 23rd, 18:29
Even if Muscat is right (which isn't the case), it is always growth. In fact thesecond highest projection in the EU. And this when our industrial and tourism markets are passing again through a recession. What would we have achieved during a European boom? If we lose Gonzi will we achieve as much?
Mr Joseph Azzopardi
Feb 23rd, 19:55
How can he not be right? He's stating facts - PN assumed a rate of economic growth, the EU forecasts much lower rates.
Carmel J. Caruana
Feb 24th, 21:13
After Dalligate can you be sure that Barroso is telling the truth about our growth projections? It seems that Gonzi and Barroso are in each other's pockets.
Thomas C. Cassar
Feb 23rd, 18:27
Tonio Fenech ilu jmur zmerc bhal ta' qablu, l-importanti li jiddejjen imbaghad u d-dejn irnexxielu jtellu sa kwazi 6,000,000,000 ewro. Tant ahna sodi li Standard & Poors waqqetna Serie B.
Mario Mifsud
Feb 23rd, 19:22
Analizi tipika ta laburist li kien imur skola fiz zmien il-perit . Forsi ghandek memorja qasir sur cassar . taf li il-gvern ghadu kif inegozja biex gab €1,280,000,000 ?
A. Sultana
Feb 23rd, 20:55
Sur Thomas C. Cassar, billi tidher li int taf hafna aktar milli nafu ahna c-cittadini komuni, ghatina breakdown tad-dejn li ghandna fil-pajjiz jekk joghgbok. Tinsiex taghmel referenza ghad-dejn li akkumulat it-Tarzna li ma ridtux li tigi privattizata u tad-dejn li halla warajh Sant fi zmien 22 xahar.
Grazzi hafna.
Salvu Sciberras
Feb 23rd, 18:21
Were Muscat worth his salt, he should have concluded by now that results were year after year closer to the government's projections than the EU ones. This is understandable because we know better our strenghts and weaknesses. No one before has managed so well Malta's economy as the Gonzi/Tonio tandem. No wonder foreigners remain happily surprised at Malta's resilience.
Mr Joseph Azzopardi
Feb 23rd, 19:57
That's why our national debt is at its highest level ever and we still have a deficit even though the 'Gonzi/Tonio' promised us a surplus around 6 times already. Wake up and smell the coffee
Carmel J. Caruana
Feb 24th, 21:14
After Dalligate can you be sure that Barroso is telling the truth about our growth projections? It seems that Gonzi and Barroso are in each other's pockets.
Marvic Vella
Feb 23rd, 18:11
Joseph is an economist and this is his field, i believe he knows what he is saying
James Abela
Feb 23rd, 19:59
So was Alfred Sant and see where that got him and us!!!
M Farrugia
Feb 23rd, 18:00
Good morning Dr.Muscat, we are talking of growth forecasts not recession forecasts like other EU countries governed by socialist parties. Next time please give us the full truth of the report, we are not that stupid as we don't just listen to Super One news.
K Grech
Feb 23rd, 18:18
Make some good research and see that these EU countries you are talking about have been previously governed by Conservative parties. Take a look at France, the current situation is what the conservative government has left.
Thomas C. Cassar
Feb 23rd, 18:26
Il-Gvernijiet Socjalisti qed jispiccaw igorru l-problemi finanzjari ta' gvernijiet ta' qabilhom Sur Farrugia bl-eccezjoni ta' Spanja fejn sieheb Gonzi, Zapatero, kien ghazaq. Mill-bqija l-Gvernijiet Socjalisti kollha telghu f'nofs krizi mibdija min ohrajn, semmi, Grecja, Franza, Portugall u Cipru b'dawn ta' l-ahhar kienu sfortunati li splodiet hazna ta' armi magenb powerstation.
Eddy Privitera
Feb 23rd, 18:34
M Farrugia: The point made by Dr. Muscat is that GonziPN's projections are not believed by the EU since they have all been corrected downwards !
Catlyn Buttigieg
Feb 23rd, 18:48
Eddie kif spiccajt trid dejjem taghweg is sewwa maghruf hu break u taghmel gid lill partit tieghek ghax ma tistax tigik wahda tajba.
Mary Camenzuli
Feb 23rd, 17:43
Wrong to be the second fastest growing economy in the EU?
.
Eddy Privitera
Feb 23rd, 18:00
Mary Camenzuli: Dr. Muscat spoke about GonziPN's projections whuich have been CORRECTED by the EU. So GonziPN's electoral program which is based on inflated projections, WILL NOLE TO BE IMPLEMENTED unless taxes are introduced. Or SEVERE CUTS are made from various sectors, including healthcare, education etc..
G Portelli
Feb 23rd, 18:43
Eddy a labourite is always a labourite and will never acknowledge success. This is what convinces me more that a PN government is the best for this country. Its been centuries now that the MLP has been saying that the PN gobernment will not deliver but IT HAS DELIVERED!
Mr Joseph Azzopardi
Feb 23rd, 19:59
Wrong to assume economic growth rates which are unrealistic Ms. Camenzuli. @G Portelli, JM has acknowledged over and over that certain things have been done right. I'm not voting PL because I think PN failed us miserably, I'm voting PL because I think things could have been done better.
G Portelli
Feb 23rd, 20:53
Do as you wish Joseph Azzopardi but Muscat never acknowledged that our economy is doing well. He wanted our economy to be like that of Cyprus. Ask those in Iceland what was the benefit of staying out of the EU! Again even in this article Joseph is trying to paint a bleak picture when it is flowering. 2nd largest growth in the EU. Only better than that would be first and believe me NOT UNDER JOSEPH
patrick cutajar
Feb 23rd, 17:42
Prosit Dr.Muscat hekk tmur is-serjeta mhux noholqu figuri u projections bombastici u tal-holm. Keep it up!
Alex Falzon
Feb 23rd, 17:32
Qed tara kemm hu bravu Joseph... huwa fatt maghruf illi sabiex tilhaq il-livelli trid tgholli l-aspettattivi inkella taqa lura...
Eddy Privitera
Feb 23rd, 18:01
Alex Falzon: Nahseb ridt tghid TOHLOM !
L Zammit
Feb 23rd, 18:27
@EDDIE PRIVITERA: Fejn ma tifhimx fitahx halqek. Ghamilt bhall pappagall
Adrian Gouder
Feb 23rd, 17:31
Your projections barely cover the power station Dr. Muscat. Give us a break please.
Eddy Privitera
Feb 23rd, 18:03
Adrian Gouder: Haven't you yet realized that you are writing NONSENSE ? The capital for the gas power-station will be coming from the private sector. And it is about HALF !he amount being invented by GonziPN !
Eddy Privitera
Feb 23rd, 18:36
Adruan Gouder: The gas power-staion included in the PL?s energy plans will be financed by a private company. Its cost is about HALF of the "invented" cost of GonziPN ! I hope this comment appears.
Mr Joseph Azzopardi
Feb 23rd, 20:01
Adrian Gouder, the power station does not need to be included in the projections because the bill will be footed by the private sector and the return on capital will be paid from the savings we will make by changing the manner in which we produce electricity from one that uses HFO to LNG.
James Abela
Feb 23rd, 20:02
@ Eddy
We should ask Conrad Mizzi. Oh yea, I forgot, he has disappeared.
Please choose the reason of your report below: