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This year was not a positive year yet it was neither excessively negative. On a positive note, it is worth emphasizing the reduction of the deficit. This paper has always felt that on the economic front there has been too much of a single issue focus on the budget deficit. Yet its reduction is a milestone in our economic development. We still have our reservations as we would equally like to see a commitment to achieving growth which involves looking at the bigger picture.
The reduction of the deficit certainly breaks a trend in its yearly increase and has the effect of lessening the high interest financing burden. We certainly welcome the equivalent of some Lm195 million in the six-year economic package from the EU. This is a direct result of membership and the commitment of government to utilise these funds in the best possible way is noteworthy. Indicators like the reduction in unemployment, in employment in the public sector, in the increase in revenues from VAT and in bank deposits are all encouraging. Beyond the good news there is much for concern.
The Gonzi government, unlike the former Fenech Adami administration, to its merit, has realised money is indeed a problem. Government is trying, not without a few notorious mistakes like Dar Malta in Brussels, to rein in public expenditure. Negative indicators however are still present. Firstly, there is no evidence at all that the prospects for economic growth are good. Foreign direct investment too is far below expectations following our entry into the EU. The dismissal of the 850 denim workers is yet another reminder that our country cannot compete in the manufacturing sector. High wage increases on a yearly basis not pegged to productivity increases has had its toil.
The economic chickens have come home to roost. The manufacturing outlook is still difficult. Squeezed personal disposable incomes is influencing spending with the consequent fall in retail sales. Government-induced costs including eco-contributions, waste management tariffs and the exorbitant departure tax have all put a further strain on company profitability. The failed social pact shall long be remembered as the lost opportunity of the year. Its implementation could have gone a long way to freeing tensions at the work place and in the corporate boardrooms. It could have been the foundation stone for economic development.
Most regrettably, the year was characterized by the continuation of clannish politics. The antagonism and lack of a new way of doing politics has carried on. The country seems unable to start doing politics differently. The advent of Europe failed to bring about a liberal revival much to the consternation of people who actively supported our entry as a means of enjoying and living in a liberal society.
The rigid position on IVF and the attempt to have the prohibition of abortion entrenched in the Constitution served only to ignite a futile debate aimed specifically at alienating the people from more pressing and immediate concerns. Much time has been lost on discussing matters of little concern and little time has been dedicated to solving matters of major concern to the ordinary individual.
This indeed was the year of the migrant and instead of realising what a wealth the diversity of cultures could have brought to our shores we lost time simply fanning our deeply rooted ‘unchristian’ prejudices. In spite of the success of open centres we carried on housing migrants in detention centres. The ugly incidents in the barracks were further darkened by the publication of a report best described as a whitewash which bestows responsibility on nobody and much fault on the media. It is a further reminder that the freedom of the migrant is not far up in the political agenda. A far cry from the values of solidarity we are only too happy to pay lip service to.
MaltaToday believes that the problems of the country are structural. As such it will take much more than a change in government to get things right.
We need a cultural change which in all fairness, only a handful of ministers around the cabinet table are committed to. The passage of time will not put things right. Solving our economic plight also involves getting the political structures and personnel in place. We need institutions captained by persons who have the respect of all shades of opinion and not just of the government of the day. We need appointments to public office based on the value of meritocracy.
We desperately need a freedom of information act where citizens and the media can scrutinize the workings of government.
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