Finance Minister Edward Scicluna has good reason to be satisfied with the European Commission’s winter economic forecast, although it will be ill-advised either for him or his government to be euphoric.

Set against the recovery which, according to the Commission, is gaining ground in the EU, the forecast for Malta confirms the point made by the minister last December that a string of facts and figures were showing that things were looking up on the economic front.

Prof. Scicluna said he was elated that the Commission had finally acknowledged that Malta’s budget would fall below the three per cent threshold allowed under EU rules.

Considering all the doubts that were expressed over this in recent months, he should be but it would, of course, be wrong for the government to relax any of the measures which are being taken to contain public expenditure.

That, and the work being done to cut bureaucracy and make the island more efficient and competitive, ought to remain among the key efforts in the drive aimed at keeping to the economic targets and to bring about a higher rate of economic growth.

Putting the projections for Malta in the wider European economic landscape, the Commission says it foresees a continuation of the economic recovery in most member states and also within the EU as a whole.

After exiting the recession in spring 2013 and three consecutive quarters of subdued recovery, the outlook is for a moderate step-up in economic growth.

For Malta, the real gross domestic product is projected to remain largely unchanged, averaging 2.1 per cent this year and in 2015.

The island had managed to do relatively well during the recession and avoided having to resort to austerity measures as a number of other countries had been forced to do.

The government had been quick to act when some firms needed help but the credit for the island’s overall performance is due to the whole country, which sought to remain competitive in what was one of the most difficult times in recent history.

The recovery taking place in Europe now has yet to take root, as Commission vice president Olli Rehn remarked so well. He said: “Recovery is gaining ground in Europe, following the return to growth in the middle of last year. The strengthening of domestic demand this year should help us to achieve more balanced and sustainable growth. Rebalancing of the European economy has been progressing and external competitiveness is improving, particularly in the most vulnerable countries.

“The worst of the crisis may now be behind us but this is not an invitation to be complacent, as the recovery is still modest. To make the recovery stronger and create more jobs, we need to stay the course of economic reform.”

The advice is applicable to most countries, Malta included.

An interesting development is that, thanks to a number of new measures that were taken, the participation rate of women in the labour force is finally rising. But work has to be created also for the registered unemployed and for new entrants: graduates and others completing their studies.

Having weathered the recession for so long, and with the recovery now seen to be gaining ground in Europe, Malta is in a better position to exploit new opportunities. Political controversies ought not to deflect the island from further consolidating its economic lines and expanding its horizon. After all, we all have the same aim, that of improving our living standard.

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