The Government is optimistic that it will succeed in reducing its deficit to 2.1 per cent of GDP by the end of next year, despite a less rosy forecast issued by the European Commission yesterday.
In its autumn economic forecasts, drafted before the presentation of Monday’s Budget, the European Commission said it projected an increase in the deficit to 3.4 per cent in 2014 and to 3.5 per cent in 2015.
However, addressing a press conference yesterday to further explain the Budget, Dr Muscat played down the EU’s forecast while admitting that the Government was still having problems convincing the Commission of its own figures.
“The problem is that the EU is used to Nationalist governments, which never stuck to its projections,” he said.
The problem is that the EU is used to Nationalist governments, which never stuck to its projections
“However, the proof of the pudding is in the eating and I am convinced that we will manage to convince the Commission that we will stay on track.”
Asked whether he expected the EU to close the excessive deficit procedure against Malta, taken in the light of last year’s 3.3 per cent, the Prime Minister said he would prefer to wait and see.
On the reactions to the Budget, Dr Muscat thanked the constituted bodies for their comments but had harsh words for the Leader of the Opposition.
Dr Muscat said that Dr Busuttil was being very “simplistic” in the way he criticised the Budget and it was not true that the Government was increasing taxes by €400 per capita.
While the Government’s revenue from tax was to be €21 million, it was giving back €60 million to the public, he said, and this would result in higher economic growth.
On the Citizenship Investment Programme, Dr Muscat refuted the notion that Maltese citizenship was being “sold” on the cheap, saying it would attract more talent to Malta.
He accused the Opposition of trying to harm Malta with its “scaremongering” and accused it of a conflict of interest since one of its MPs had put in an unsuccessful bid to assist the Government in this scheme. Dr Muscat refused to name this MP.
Pressed to state whether the US Government had sought clarifications from the Maltese Government over the scheme, the Prime Minister said: “The Government discusses with many foreign governments.”
He accused the PN of being “childish” since all its MPs wanted to speak in Parliament over the law related to this scheme.
“It seems there are some members of the Opposition who have an interest in other countries being before Malta in introducing similar schemes,” he said.
Around the kitchen table
The introduction of free childcare for parents will change the face of Malta’s economy by encouraging more women to work, Prime Minister Joseph Muscat said.
Sitting around the kitchen table in Carmen and Charlie Tanti’s home in Naxxar, he also referred to the breakfast club, which would allow parents to take their children to school an hour earlier and get to work on time.
As he turned to the couple’s two adult daughters and son, he mentioned the tax incentives for first-time buyers and one daughter said she hoped to benefit from the incentive.
Dr Muscat said he had received an e-mail from a man thanking him for the measure and telling him he had already ordered his living room for his new home.
The Tanti family thanked Dr Muscat for the promised cuts in water and electricity bills. He told them the Government wanted to leave more money in families’ pockets.