Government denies intention to propose changes to COLA mechanism

Finance Minister Edward Scicluna says current COLA mechanism is good enough to convince the European Commission on its flexibility.

Finance Minister Edward Scicluna.
Finance Minister Edward Scicluna.

Finance Minister Edward Scicluna denied government has any intention of proposing changes to the Cost of Living Adjustment mechanism insisting that this already enjoyed a certain amount of "flexibility" which social partners should recognise.

Scicluna was reacting to media reports saying that the government intended to propose changes to the COLA mechanism to better reflect Malta's productivity and bring it in line with EU expectations.

"The government's agenda does not include changes to the COLA mechanism," Scicluna said in a statement.

However, The Times have reported him as saying that the government "intends to reform COLA to address the concerns of the European Commission. Our idea is to tweak the mechanism particularly in relation to productivity."

But now, Scicluna said that the Finance Ministry has made its representations to the European Commission on the viability of the current COLA mechanism.

The Malta Council for Economic and Social Development (MCESD) has carried out a study in which it proposes a number of changes to the mechanism. But to this day, these changes do not enjoy consensus.

Scicluna, the ministry said, is convinced that the current system can convince the European Commission that it shouldn't be changed, given the "flexibility" already employed in the mechanism.

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I go to buy my usual stuff and find out that most of the prices has gone up. Theoretically this price hike is covered by the COLA, although with a year's delay and using a very suspicious, one sided, formula. Now, we are being told by the almighty in Brussels, that any salary increment must be accompanied by an increase in productivity. So, in the future I will have to work more to buy the same stuff I buy now, and every time I need an increment to cope with future price hikes I need to work even more. Where is this vicious cycle going to end? Of course, with less money in my pocket, my purchasing power will decrease , that will, in it's turn increase the prices due to the economies of scale. The increase in price of an item can be attributed to different factors but whatever the cause, somebody along the supply line is getting richer and we have to work harder to cater for his increment, while I am not being allowed to increase my salary to cater for this person's greed. To make things even worse, we have seen Brussels demanding more taxes and sacrifices from bystanders to cover errors done by greedy or incompetent bank administrations. Who are these Brussels representatives really representing?
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The Times is always there to bend and misinterpret whatever the PL says to have it reflect the opposite of what it is said.
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The Times is always there to bend and misinterpret whatever the PL says to have it reflect the opposite of whAT it is said.