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‘Malta should have never carried Greek burden’ – Alfred Mifsud
In the event of a forced Greek exit from the eurozone, Malta will be the among the most economically vulnerable countries in the region.
3 June 2012, 12:00am
Duncan Barry
Duncan Barry
1 min read
Malta is carrying the highest load as a proportion to its GDP of its exposure to Greece, directly and indirectly Alfred Mifsud
With polls predicting Syriza in Greece could emerge with the greatest number of votes in the coming election, and with further bailout payments suspended by EU leaders awaiting the government’s direction and the country’s coffers expected to run out of cash soon, the chances of Malta to recovering most of the funds lent to Greece look bleak.
European leaders are pointing out that if a new Greek government – run by Syriza – were to ‘tear up’ the Memorandum of Understanding, signed between Greece and the EU, it would mean that Athens also negates the bailout agreement.
In that case, Greece could be forced to leave the eurozone by the very course of events it would have triggered. Greece is set to go to the elections on 17 June.
The main concern of economist and blogger Alfred Mifsud – who this week expressed his concerns over the losses Malta could incur if a new Greek government run by Tsipras was formed and the memorandum regarding the bail-out conditions is ‘torn’, eventually leading to a Greece-euro exit – is that “Malta was carrying the highest load as a proportion to its GDP of its exposure to Greece, directly and indirectly”.
While, according to economist Dr Gordon Cordina, “the renegotiation of the Greek bailout terms, which may be considered as relatively fair in relation to the extent of mismanagement that was prevailing, is, I hope, vain posturing by politicians”.
Cordina tells MaltaToday that there needs to be a clear message that in this day and age, fiscal discipline is imperative.
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http://www.maltatoday.com.mt/en/newsdetails/news/world/Cyprus-could-seek-EU-bailout-money-if-necessary-20120604 Another one down the drain.
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The Right has failed Europe and has mismanaged the economy in the times of plenty. Merkel, is reaping the fruits of Schroeder- the previous socialist chancellor- who negotiated a new social pact between capital and labour; Berlusconi is out,Sarkozy is out as well, whilst the Danish Right was routed.
We need new people, new ideas and a vision which makes people at the center of politics. Muscat, is a bout of fresh air, and seems to be moving in this direction.
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Dear Franco, I hate to reply to anonymous contributors. I fail to understand why such contributions are in fact allowed. You, and Mr Mifsud and Drt Cordina, may wish to read the following article.
http://www.guardian.co.uk/world/2012/may/31/greece-austerity-failure-syriza-bailout
As regards, immigration, all European countries have shouldered the "burden" (though it may well be an economic opportunity) and in many cases, other countries have shouldered a heavier burden than our's. Thinking otherwise would be the result of a blinkered, parochial and provincial vision which is so typically Maltese.
J. Ellis.
Joseph MELI •
Rather a case of shutting the stable door after the horse has bolted and where was this genius ,and why didn't he let us know his views , at the time when the loans(sic) were taking place?I personally asked our Finance Minister at that time what risk assessment analysis we had carried out before cavalierly lending the tax-payers money to a known and perpetual defaulter of and reneger on loans -Greece?He was gracious enough to respond and informed me that this was a sound investment for Malta and its people.Anything else is superfluous to add.
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Mr joellis who guaranteed that the greeks would do their part. As usual our local fools rushed in where angles fear to thread, and for what? Tonio Fenech had ashured us that the money lent to Greece would render a profit, which at present shows that it is unlikely that we'll break even. Mr ellis what EU solidarity are you talking about the same shown to us regarding the illegal migrants? What a sordid sense of humour you have.
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Mr Mifsud, you may not have understood that Europe is built on the value of solidarity. It is not on that European countries would not assist Greece in its hour of need but the Greeks have to do their part as well.
Dr Cordina, fiscal discipline at a time of recession is anticyclical and is ruining Europe. Great economists like Stiglitz, Roubini and Krugman are adamant on this. In a recent interview, Joshka Fischer stated what has been clear for so long : Merkel, Sarkozy and the European Commission are repeating the mistakes of the thirties. Europe can only solve its problems with greater political and financial integration, selective capital expenditure and a re-think of the welfare state to cut down on wasteful practices but not on austerity measures which bring whole economies to a halt.
J. Ellis.
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Alla wahdu biss jaf fejn sejjrin iwassluna il-PAR IDEJN SODI, hux veru Dr Lawrence Gonzi. U il-Gvern ta GonziPN min ma jhallasx it-taxxa nitfawh il-Habs.
Mhux il-Kabinett bla talent imma lanqas ir-RAS.
