“A pessimist is a man who thinks everybody is as nasty as himself, and hates them for it.” These were the wise words of George Bernard Shaw, an Irish writer and socialist who co-founded the London School of Economics.
The attitude of the last Nationalist government in all areas pertaining to the economy fits brilliantly in Shaw’s succinct description of pessimism. I, for one, could not stand another minute of naysaying and scaremongering.
We were told, over and over, that it was impossible to lower the electricity bills, that Enemalta was a lost cause, that the manufacturing business would close shop, and so on. No solutions were ever offered. A Labour government would wreak havoc with the economy, they also told us, and we would need a bailout if Labour were to be elected.
Three years later, and the economy is doing much better than it ever did during the past two legislatures. We can boast of the third-lowest rate of unemployment and the second highest economic growth in Europe. Both the national debt and deficit are in a fast and steady descent. All of this was achieved without any of the austerity measures the European Commission had put forward.
The naysayers have now changed their tune. Since they cannot convince anyone that the economy is doing badly, they are now attempting to claim the merit for the economic turnaround. This they cannot do, because the past three years have been exactly that; a turnaround, and not a stepping stone, as the leader of the Opposition would have us believe.
While there were sectors which were doing well under a Nationalist government, such as the financial sector, the current government did not obtain the current results just by using these sectors as a stepping stone. In many crucial sectors which had been giving an abysmal performance for successive years, the government had the daunting task of turning the economic wheel in the opposite direction.
The most telling turnaround was experienced by Enemalta
The national deficit, for instance, stood at 3.6 per cent by the end of 2012. This despite the fact that a Nationalist government had promised a surplus by the end of the legislature.
In contrast, by the end of 2013, the deficit was slashed to 2.6 per cent, in 2014 it stood at 2.1 per cent, and in 2015 it was deducted further to 1.6 per cent. A similar downward trend can be observed in Malta’s national debt, which the European Commission expects to go down below 60 per cent by the end of the legislature.
Unemployment is currently experiencing historical lows. At 5.1 per cent, last January’s figures mean that the unemployment register is featuring 2,000 persons less than it did in January 2013. The average unemployment rate during the past legislature was 6.5 per cent. Although around the third quarter of 2011 unemployment had dropped to 5.9 per cent, the government later seemed to have lost the plot, as unemployment rose again and did not drop beyond 6.1 per cent.
Before the last general election Simon Busuttil was predicting a mere 2.3 per cent economic growth in the scenario of another Nationalist legislature.
Since the PN’s track record in keeping pre-electoral promises is appalling, we can only assume that the 2.3 per cent target was a highly optimistic one. Labour, on the other hand, has delivered a growth of 6.3 per cent, with the growth experienced by the majority of EU countries paling in comparison.
Perhaps the most telling turnaround was experienced by Enemalta. Enemalta’s situation was so dire, that Tonio Fenech had declared he would gladly sell it off for €1, if only he could find a buyer. However no solution was ever forthcoming. The present government, on the other hand, managed to find a partner willing to invest in the company. Today Enemalta is not only far from bankrupt, but is also investing in offshore energy projects.
To those not wearing blinkers it is crystal clear that, for the most part, the current economic success has been obtained through the decisions taken by the present government. The only stepping stones left by the previous administration which the Prime Minister is treading upon are those leading to the doors of Castille.
Etienne Grech is a Labour Party MP.