The Nationalist Party said today that it welcomes the European Commission’s forecasts for the coming years, indicating an economy which should continue to grow at a moderate pace, with unemployment at relatively low levels, and pointing out sectors which require attention to ensure sustainable growth for all. 

It noted that the Commission’s report also highlighted a number of worrying economic trends, which, the PN said, it had been bringing to the attention of the government for the past couple of years.

These issues were raised again in the Pre-Budget Document presented by the Nationalist Party, but were brushed aside as irrelevant by Government instead of being addressed in this year’s budget. 

"Clearly, to the European Commission, such issues are not irrelevant at all," the PN said. These issues include:

a) The troubles being faced by the manufacturing industry, which has witnessed a decline in the past couple of years, particularly the electronics sector;

b) The significant reduction in exports, which despite a slight turnaround in the past few months, remain way below 2012 levels;

c) Despite an improvement in the country’s debt-to-GDP level (and irrespective of a significant increase of debt in absolute terms), the Commission has acknowledged this was mainly a result of a one-off measure related to Enemalta paying its arrears following the selling of key assets to Shanghai Electric;

d) Government expenditure and salaries remain a major contributor to economic growth;

e) Cost of living is picking up at a higher than average pace, particularly with regards to food prices, which affect our families most."

The PN said it hoped that rather than solely highlighting what is positive and ignoring the rest, the government acts on these warning signals.