Labour leader Joseph Muscat said today that EU economic projections for Malta, issued yesterday, showed that the government's own growth projections were wrong, and therefore, the PN's electoral promises could not be honoured unless taxes were raised.

He was speaking at a conference by the Ideat Foundation on the theme “For a New Progressive Europe”.

The Labour leader said the the PN governemnt had projected last year's economic growth at 1.2%, but the European Commission said it was actually 1%.

The government was projecting a growth rate of 2.3% this year, but the Commission's projection was of 1.5%.

For next year, the government was projecting growth of 2.4%, but the commission was saying 2%.

Dr Muscat said the PL's electoral promises were based on the statistics of the EU and the International Monetary Fund and they were therefore realistic.

He noted that the PL's plans entailed less spending by the government, thus ensuring that no new burdens were imposed on the economy.

PN REACTION

In a reaction, the PN said the Labour leader had made a wrong analysis of the economic projections.

Furthermore, the PN economic forecasts were based on the schemes and incentives which the party was promising to introduce to boost economic growth.

These included incentives to industry, tourism and SMEs as well as tax cuts. These incentives were not included in the EU's calculations.