PN says IMF report rings alarm bells on job creation

The Nationalist Party welcomed the IMF report on Malta, describing it as a "clear and positive certificate of the previous administration's financial and economic policy."

However, it added that the Labour government was not giving job creation its due importance and the IMF report underlined its concern over the government's lack of vision

The Opposition spokesperson on finance, Tonio Fenech said that report applauded the previous government's policy which resulted in the highest growth rate in the Eurozone during the last five years.

He added that the report also commended the PN government's policy in job creation which helped Malta maintain one of the lowest unemployment rates in the EU.

"On the other hand, echoing the European Commission, the IMF expressed its doubts on the Labour government's capability of reaching its financial targets for 2013, despite the government lowered its goals," Fenech said.

The former finance minister said that the IMF's concerns over the growing expenditure in salaries led to Malta being included in the Excessive Deficit Procedure by the European Commission.

Fenech also highlighted the IMF's warning on the risks created by over-dependence on the property market, which could expose Maltese banks to undesirable dangers and the government's lack of vision in job creation.

"The former PN government worked ever so hard to create jobs in new sectors such as gaming, pharmaceuticals and aviation, which formed part of a clear plan for job creation. The Labour government has yet to address job creation and this was reflected in an increase in unemployment, as confirmed by the National Statistics Office," Fenech said.