Gonzi wants to increase pensionable age - Labour

The Labour Party has accused Prime Minister Lawrence Gonzi of supporting European Council recommendations to raise the pensionable age and begin discussions to remove the cost of living allowance (COLA).

The party was reacting to a ministerial statement delivered in parliament on Monday by Prime Minister Lawrence Gonzi. “Lawrence Gonzi justified his position by saying that if the pensionable age does not increase again, the country would collapse," the PL said in a statement.

Labour said Gonzi was prime minister when he presided over the pensions reform of 2006 that increase pensionable age to 65. "At the time he said this would solve the situation. It is shocking that the prime minister has justified this reform by saying that he will be retiring at 62, and not ay 65."

On Monday, Gonzi listed specific recommendations approved for Malta's economic stability, made during a meeting between the European Council and member state leaders on 23 and 24 June.

Among these was that the recommendation government reduces its deficit during 2011 and meets its 2012 deadlines.

Gonzi said that Malta also needs to ensure the sustainability of pensions by binding retirement age to developments in life expectancy (meaning that Malta should extend it), and drive down Malta’s exceptionally high school-leavers.

The European Council also recommended that Malta revises its wage bargaining and indexing mechanisms to better reflect productivity and competition, as well as a reduction of Malta’s dependence on oil and develop alternative energy sources.

Each member state’s progress will be reviewed in 2012.

Gonzi said that the European Council also approved measures to strengthen the EU’s economic governance and to ensure the Eurozone stability, such as the European Stability Mechanism Treaty, and amendments to the European Financial Stability Facility (EFSF). “We need to ensure the ratification of the European Stability Mechanism Treaty by end of 2012,” he said.

On immigration, the European Council also agreed that cooperation within the Shengen zone should be strengthened while Europe’s external frontiers are handled “effectively and consistently based on common responsibility, solidarity, and increased cooperation.”

Gonzi said “a mechanism is being considered that, without endangering the principle of free movement of individuals, accounts for exceptional circumstances that upset fundamental Shengen cooperation.”

This proposal “should conclude monitoring visits, technical and financial support, as well as assistance, cooperation, and interventions by Frontex so that member states facing acute pressures from external frontiers are assisted.”

The European Council also welcomed the extension of a voluntary pilot project fir the beneficiaries of international protection in Malta, Gonzi said.

Gonzi added that a “structured and comprehensive” dialogue on migration, mobility, and security will begin with these countries, with the “aim to establish benefits for them as well as for the EU.”

Gonzi also said that Croatia’s entry into the EU was also discussed, and it was agreed that all necessary decision should be for the conclusion of negotiations by June 2011.

The EC also approved the decision to appoint Mario Draghi as President of the European Central Bank for the next eight years as from 1 November.