Alfred Sant: Malta needs democratic transparency urgently

The former Labour prime minister who saw his government toppled in 1998, has refused to comment on the current political crisis the Nationalist government is facing, saying that he "doesn't comment on exigencies and contingencies".

Labour MP Alfred Sant however said he agreed with the position taken by Opposition leader Joseph Muscat and added that the country needed to solve this problem as soon as possible.

"The issues must be solved as soon as possible and stability must return democratically. The country needs a government which is able to obtain national consent over measures which need to be taken in view of the eurozone crisis," Sant said.

Speaking during the launch of his book 'Malta u l-Ewro/& the euro', Sant said the European Union has already increased its efforts to seek stronger control over the Maltese budgets.

Last Friday, following the Cabinet reshuffle, the finance ministry announced a partial review of budgetary allocations. On the same day, MaltaToday revealed that Malta was one of five countries under pressure from the European Union to ensure they cut the 2012 budget deficit to less than the 3% of GDP limit set by eurozone criteria.

"Government's decision to cut its budgetary expense followed a directive from Brussels," Sant said, adding the review came just a few weeks after parliament approved the budget.

Sant warned that government not only had to see how to control its "debt bubbles" but must also pay attention whether the deficit reduction can include an increase in taxes.

"Everything is tied with austerity measures. At the same time, austerity measures harm economic growth. There is high eventuality of another recession which will affect Malta badly."

Asked whether he saw any similarities between what Prime Minister Lawrence Gonzi is experiencing with his government, and what Sant himself passed through in 1998, Sant said: "Everyone can compare and everyone can deny similarities. I let the public decide."

Asked what he thinks the Prime Minister should do at this stage, Sant said he doesn't presume he should be giving advice to the Prime Minister.

Sant however supported Muscat in his call for the issue to be resolved democratically with a vote of confidence.