The Government has over the past five years struck a balance between safeguarding employment levels and maintaining the standard of social and health services, Prime Minister Lawrence Gonzi said yesterday.

This was coupled with the need to ensure strict prudence in financial management at both national and institutional levels, he told members of the diplomatic corps who visited him at Auberge de Castille, Valletta, yesterday to exchange New Year greetings.

The wisdom of this policy had been proven to work, he said, citing Malta’s relatively good performance in 2012, when the economy was estimated to have grown by 1.2 per cent against a contraction of 0.4 per cent in the EU.

“We expect it to maintain and even improve this positive trend in the coming months, reaching 1.6 per cent for the whole of 2013,” he said.

During the meeting, Dr Gonzi also spoke about the upheavals in the neighbouring regions of sub-Saharan Africa and the Middle East. He underlined the importance of collaboration across countries and said he looked forward to further consolidation of bilateral relations.

President George Abela touched upon similar subjects during a meeting with the same diplomats at the Palace in Valletta earlier in the day. The diplomats included ambassadors and high commissioners representing their countries in Malta.

Dr Abela spoke about the effects of the international economic crisis, the relationships within the Mediterranean region and the turmoil in the Middle East.

“With regard to the Middle East Peace Process, one of Malta’s guiding principles remains that of consistent support of the two-state solution. The ultimate aim is a comprehensive peace agreement that sees two states – Palestine and Israel – living side by side in peace and security,” he said.

The diplomats also met Foreign Affairs Minister Francis Zammit Dimech and Labour Party leader Joseph Muscat to exchange greetings and share a few thoughts on international issues.

Dr Muscat assured the diplomats that a Labour Government would strive to maintain a good relationship with all their countries.

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