First post-election year in which Malta did not fall into Excessive Deficit Procedure

This is the first time since Malta joined the EU that the first year after an election did not lead Malta to the Excessive Deficit Procedure, Prime Minister Joseph Muscat said yesterday.

Speaking at the Msida Labour Party Club, Dr Muscat reminded listeners that in 2003, 2008 and in 2013 the extra expenditure in the election year meant that Malta had to be declared to be in the EDP.

“Not this time, however. The government, as it will do again in next week’s Budget, will only spend what it can spend.

“Usually, the first year after the election is the year in which the government of the time lumps its people with burdens, thinking that the people will forget the pain when the next election comes round.

“This government will not do that. It spends what it has, not more, what it can afford. Because of this policy, this government has managed to build growth on growth and has become the envy of the world.

“The government has managed to come up with a surplus and it is using it to lay the groundwork for the future. It is not afraid of change.

“It is very simple for countries to come up with a surplus - by cutting down on investments, laying off workers, cutting wages, and pensions, increase taxes, etc.

“But this government did not do this. On the contrary it increased wages and pensions and brought in investments.”

Dr Muscat did not mention Adrian Delia in his speech. But MP Stephan Zrinzo Azzopardi did. He harkened back to Dr Delia’s words at the PN mass meeting.

Dr Muscat said these are the days of the last minute preparations for the Budget. Usually people used to ask themselves what would increase in cost, what taxes will be introduced, etc. But now people know they will get to hear about increases in wages and in pensions.

He said he had looked into the PN pre-budget proposals and they have parts which contradict each other.

“It is clear the document was drawn up by someone who did not bother to get all the proposals in line with each other. The document also said that taxes had risen by twice the EU mean in 10 years but that referred to the PN years as this government has not increased any taxes. This government has increased spending on education and health. In 2012 there were 839 applications for social housing and last year there were 637. Otherwise, the PN proposal represents the party’s proposals for Gozo including the €10,000 grant to those who choose to go and live in Gozo.

“On the contrary, this government prefers to look forward. When he met the European leaders last week he could see how much Malta was in advance of many others on the digital economy.

“Malta has already taken initial steps as regards Blockchain which will completely change the way we do things, such as dealing with banks. Malta can thus become an example to the whole world.

“A few days ago a delegation from Alibaba, the Chinese search engine, was in Malta. They are interested in using Malta for data storage. Malta can thus become a place where new technologies are experimented with.”

Dr Muscat then referred to some recent government initiatives, such as insisting that a Parliament committee vets appointments to government agencies and ambassador posts, much like the innovation introduced in past months regarding the appointment of judges and magistrates. The Opposition approved this but they were 25 years late.

Finally, Dr Muscat referred to the coming Valletta 18 celebrations which will cost €10 million and involve more than 1000 actors.

Besides, government is also spending €25 million to rehabilitate Valletta such as the Tritons’ Square which will give Valletta a beautiful entrance.