Finance ministry accuses Opposition of ‘partisan interests’

The Finance Ministry has denied that the budgetary cuts will affect social services, pensions and the people's purchasing power.

"The economy of our country has continued to grow, creates work and is stable and credible," government said in a statement. "In its attempt to discredit the financial and economic results, the Opposition has embarked on a negative campaign intended to create fear over the revised budget."

The ministry was reacting to statements made by financial spokespersons of the Labour Party earlier this morning. During the press conference, Labour's spokesman for finance Karmenu Vella argued that the multiplier effect of the revised budget would bring down the economic activity by some €60 million.

But government is arguing that its recurrent expenditure on health, education, social benefits and other sectors has increased: "The revision in the budget is aimed at reducing the operational and administrative cost of government. The only multiplier effect is improved economy efficiency." 

The Labour Party also accused government of presenting a too optimistic budget, which did not mirror the financial situation of the eurozone. It also said that government "set goals but hid actual results".

Government said its budget was presented in a particular context: "The financial and economic crisis brought down on their knees countries because of high deficits and public debts. Our country is not cut off from this reality."

The finance ministry added that the country chose to invest in the economy to create and safeguard jobs.

"This goal, set in 2008, is being reached without endangering Malta's financial situation. In the past four years, government invested heavily to create more jobs. With clear directions and concrete initiatives, Malta managed to evade the international crisis leading to a rise in unemployment."

The government said that Malta was one of eight countries which managed to increase its working population and added that the 3.9% growth was the second highest in Europe, after Luxembourg.

"The same report shows Malta experiencing economic growth higher than the EU average, which means that government, through responsible decisions, not only defended what it created but built on it to give families a better life."

The finance ministry also said that the European Union has confirmed that the country's finances are "credible and sustainable".

"But the Opposition is only interested in partisan issues and is prepared to weaken the EU's approval to do this," the ministry said.