No agreement on compensation for fuel price increases was reached at a meeting of the Malta Council for Economic and Social Development this morning.

The council met to discuss a government report on the impact of the fuel rises on the economy, and only decided to commission another report on the impact of the rises on the vulnerable sections of society.

GWU Secretary-General Tony Zarb said he was extremely disappointed by the report and the outcome of the meeting.

Finance Minister Tonio Fenech said the report showed a 2% impact on inflation caused by the fuel price increases, which was not that large considering the economy as a whole. He noted that most of the social partners were cautious about giving compensation which could undermine competitiveness.

His views were echoed by the GRTU and employer organisations.

Vince Farrugia, for the GRTU, said the economy should not be shocked at a delicate time when it was slowly recovering.  

Stefano Mallia, for the Chamber of Commerce, said that rather than across the board compensation, one should target the vulnerable members of society.

The FORUM group of trade unions at a press conference this morning said that rather thn more reports, the governemnt needed to give immediate compensation to ease the burden on households. FORUM is not part of the MCESD.

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