The government is investigating economic figures which show that the cost of living in Malta has risen by over four per cent.

Speaking on Radio 101 this morning, Prime Minister Lawrence Gonzi said these statistics were somewhat strange because they were showing that the cost of living had risen because of an increase in the cost of tourist accommodation when hoteliers were insisting that rates did not go up.

He said that experts were studying the situation because the government wanted to control the cost of living and keep it at a European level.

The country’s ambition, Dr Gonzi said, was for the Malta to become more European and for European quality of life and benchmarks to be reached.

Dr Gonzi also spoke on pensions and said that a very good detailed report had been prepared about another reform in the system and this was currently being analysed.

Once the analyses and debate was concluded, it would be time to legislate, he said.

Dr Gonzi said that the government was being pressed to introduce, for example, a second pillar pension, this was all well and good but who would pay for it? There were options about how this and other measures could be introduced and these were currently being studied.

Asked about the recent step taken by the European Central Bank aimed at easing the Eurozone crisis, Dr Gonzi said that any step taken internationally to facilitate the situation was good news for Malta as health European markets were good for the local industry.

He insisted that the right decisions had to be taken even if these were tough because there would come a time when there would be no option but to take them and then they would be tougher.

He reiterated his claim that 20,000 jobs were created in the past four years and said that this could be easily proven by the fact that had this not been the case, the 15,000 people who had graduated in the period would be looking for a job.

Malta, he said, was doing well, the government’s policy was bearing fruit and figures clearly showed that opportunities had been created and the standard of living had improved.

Asked whether the budget would be presented before an election is called, Dr Gonzi said that the government would be returning to Parliament determined to present the budget, which was a strategic document which planned the coming year.