In the first two quarters of this year, Malta’s GDP has registered a four per cent growth. This is indeed welcome news as we all know that most of Europe is struggling to make ends meet. We have all heard of the austerity measures governments had to take in Greece, Spain, Portugal, Hungary, Italy, the United Kingdom and now France and we have seen the people’s protests.

Our economy is recovering well and our unemployment level is the fourth lowest in Europe. Considering the circumstances, this is a miracle. The government’s focused measures worked. And how! Although we are out of the recession and this is not a jobless recovery as prophesied by economist cum Leader of the Opposition Joseph Muscat, the Prime Minister suggests caution. Rightly so! Most of our main trading partners are expecting a slowdown for the second half of the year.

However, the Leader of the Opposition, now well-known for his lack of substance, still insists that the government should subsidise our wasteful water and electricity bills and that in the next Budget it should cut income tax. I am sure the government will maintain its promise when the time is ripe; all of us will be thrilled with the tax cut but will Dr Muscat explain where the government should get the money to replace the shortfall in revenue, given that the deficit has to be reduced by some €60 million?

Should it reduce the myriad of social benefits it offers the vulnerable among us? Should it do away with free education and stipends to all our students? Should it start charging for health services and medicines to all who need it?

We are all waiting for a reply.