Prime Minister Joseph Muscat speaking in Tarxien yesterday. Photo: Darrin Zammit Lupi

The government has been vindicated by news that Malta has attained a deficit target below the three per cent mark, Prime Minister Joseph Muscat said yesterday.

He said that not only did the deficit figure shrink to 2.8 per cent, thanks to a careful spending and cost-cutting exercise across the board, but jobs were created and the economy had grown by 2.4 per cent.

Addressing the party faithful in Tarxien as part of Labour’s European Parliament election campaign, Dr Muscat said this news joined that of lower water and electricity rates in vindicating the party’s ambitious targets.

“Opposition leader Simon Busuttil had told us that these were not possible but we achieved them.

“What credibility does [former Finance Minister] Tonio Fenech have to speak about the economy and the deficit if the deficit he left behind got us into trouble with Europe?” he said.

“We managed to reduce the deficit without raising taxes and despite measures to reduce water and electricity rates, reduce income tax rates and give a refund on VAT on the car registration tax. A reduced deficit is important for the country because if control is lost, people will suffer.”

Describing yesterday as “a beautiful day for Malta”, Dr Muscat went on to explain the concept behind the Youth Guarantee Scheme, details of which were announced yesterday.

This scheme, targeting some 2,000 youths, will offer free private lessons to those who do not pass their O-levels.

There will also be a programme for those who did not sit for any O-levels and another for students who failed their foundation course at the Malta College for Arts, Science and Technology.

These measures will cost €3 million and more than 1,200 jobs will be created, Dr Muscat said.

He said these youths would otherwise either end up in precarious employment or in crime.

“I prefer spending millions on people than on other things such as roads or pavements.

“These are our core values. We will not forget anyone,” he said to resounding applause.

While helping those who are falling behind, the government was also busy helping those who were high achievers, giving them scholarship schemes to further their studies.

“This is what Malta Tagħna Lkoll means: that you think of those who are high achievers at the same time that you introduce specific measures to help those who fall behind,” he said.

Education Minister Evarist Bartolo admitted that 1,300 had been employed in the public sector since the election: 800 in education and 500 in healthcare.