In recent months, the whole world has been talking about the global economic crisis. Neighbouring countries are taking austerity measures to save their economies. Countries in the euro area are making every effort to stay within the group to continue to enjoy the benefits of the single European currency.
Malta continues to resist this crisis without resorting to extreme austerity measures- Mario Rizzo Naudi
Unfortunately, in Malta, the Labour opposition is only interested to win power at all costs and not help protect workers’ jobs. Still, without their help, the Government is succeeding in securing the jobs for our families.
In neighbouring countries members of the European Union, governments are imposing austerity measures to address their economic plight. In Italy, last September, Silvio Berlusconi raised the VAT rate from 20 to 21 per cent. The present Italian Prime Minister, Mario Monti, announced that, come October, the VAT rate in Italy will again be increased from 21 to 23 per cent, which is equal to the rate of VAT levied in Greece, the country most adversely affected by the crisis.
Monti also announced several other measures, including the removal of the free medicines system and the introduction of a new tax on residential houses and other properties. The residential house tax could rise to almost €1,000 per year. Furthermore, the waste collection service charge has been increased and, in some cases, would rise to € 2,000 a year. While the unemployment rate rose further to 10.8 per cent, the price of petrol, diesel, electricity and gas continued to escalate.
Spain also raised its standard VAT rate from 18 to 21 per cent. Public service workers this year lost their traditional Christmas bonus. Unemployment benefits will drop by 10 per cent after six months from loss of employment.
According to Eurostat’s June report, Spain’s unemployment rate is 24.8 per cent. Last month, the Spanish Prime Minister, Mariano Rajoy, admitted that it is not possible for him to increase the number of jobs in his country. This is in sharp contrast with the situation in Malta where the issue is not job creation but how high the number of newly-created jobs would be.
In Portugal, the worst affected sector were public service workers who have lost a number of public holidays and bonuses equivalent to over one month’s salary. Pensions were also reduced and private workers are being forced to work 30 minutes a day more without extra compensation. The official unemployment rate in Portugal stands at 15.4 per cent.
Cyprus, that small country, like ours, which the Leader of the Opposition suggested as a role model for our country, has an unemployment rate of 10.5 per cent. Last March, Cyprus increased its VAT standard rate from 15 to 17 per cent and the reduced VAT rate from five to eight per cent. It also imposed a new contribution that is to be paid by public and private sector workers based on their salaries. A wage freeze was also imposed on the salaries of public sector workers for two years.
While all this is happening around us, Malta continues to resist this crisis without resorting to such extreme austerity measures. Our unemployment rate as reported by Eurostat in June 2012 is 6.2 per cent, which is better than in Belgium (7.2 per cent) and the UK (8.1 per cent).
The Maltese Government has neither reduced workers’ wages nor pensions; on the contrary, the latter continued to increase. Nor was there any reduction in essential services such as public health or education. Investors are still showing trust every time bonds or other investments are tendered for sale in Malta.
There is no doubt that the wealth being generated in our country under Nationalist governments risks going haywire if Labour returns to power. What Malta has achieved has not been acquired by chance but through careful planning, which the Labour Party does not possess. Labour knows this and Joseph Muscat has tried to guarantee by word of mouth that Labour is ‘safe’ for investors (he didn’t have to give such guarantee unless real doubt exists).
Next year, Malta will once again be at the crossroads and the electorate will have to make an important decision: either opt to continue progressing on the path of wealth creation or choose to change route and approach oblivion, without serious and concrete plans for the future of our country, as promised by the Labour Party.