'Families working more but earning less' - Charles Mangion

In a statement, Labour’s spokesman for the economy and finances Charles Mangion said that the latest ‘Update of Stability Programme 2011-2014’ that was published by the finance ministry this week, contrasts with Prime Minister Lawrence Gonzi’s upbeat prospects for the economy.

Mangion says that the report clearly shows that the European Commission is forecasting a much lower economic growth rate than Slovenia, Slovakia, Luxembourg, Finland, Estonia and Cyprus.

He said that this means that GDP per capita – which was already down from 86% to 81% from the EU average between 1995 and 2009 - is expected to continue to decline.

“Should this negative trend continue, it would bring about further hardships for families, as purchasing power will continue to fall as wages will further not match the cost of living,” Mangion said.

He added that Maltese families are faced with a number of economic measures that are impacting on their finances and well being, and accused government of being insensitive to the realities of burdens families are carrying, most especially with hefty utility tariffs and fuel prices.

Mangion said that the cost of higher utility tariffs is expected to cost families and small businesses some €77 million, while the increase in excise duty and VAT on hotel services is expected to cost the economy an estimated €25 million.