Labour leader Joseph Muscat yesterday criticised the government’s reaction to credit rating agency Moody’s downgrading of Malta, which was described by Finance Minister Tonio Fenech as “unfair”.
The government is acting as if debt is not a problem
Dr Muscat said when the same agency rewarded Malta with a positive rating when the island joined the Euro it was lauded as a great certificate for the country. But now the news was bad, the government questioned the agency for operating from the US and taking such decisions over the telephone.
Dr Muscat also said it was “irresponsible” of Mr Fenech to say the downgrade would not really impact Malta.
Although Dr Muscat acknowledged that the government could not be blamed for the Eurozone crisis – the main reason behind the downgrade – he said Moody’s also lambasted the government’s financial and economic leadership by highlighting the country’s “weak debt metrics”.
“For us economists, it could not have been said any simpler,” he said, explaining the government had lost control of debt.
However, the government was acting as if debt were not a problem, using the same mentality which brought other countries to the brink of collapse.
He also criticised the government’s position on the European Commission’s pension reform white paper, which could result in another increase of pension age.
Speaking at a campaign event in Qawra, Dr Muscat said Labour was aware of the social realities in the area but the Nationalist Party remained oblivious and saw the local council elections simply as an opinion poll.
Labour provided a realistic and concise electoral programme while the PN offered “poetry” about roads and historical places, ignoring the needs of residents.
Voters had a choice between a completely new idea of local councils or the status quo, he said, promising an “open government” and more transparency.
Dr Muscat said Labour-led councils would stream meetings online to give residents chance to follow without having to attend physically. Meanwhile, a pilot project would see a representative of the public present when councils adjudicate tenders.
Each time a big project arose which could impact residents, Labour-led councils would organise meetings with residents, and petitions organised by residents would be placed on the agenda to reward initiatives.
Dr Muscat urged people to collect their voting documents, pointing out that some 150,000 had still not been collected, even from many Labour strongholds.
Reacting to Dr Muscat’s speech, the Nationalist Party said that for all his talk of transparency, he had done nothing to stop the disastrous behaviour of the Labour-led council in Mosta despite sending representative Tommy Roberts to follow meetings.
It added that if Dr Muscat got his way on pensions, the young people of today would have no pension when they retire.