Opposition wants to contribute to creation of sustainable fiscal model

The Opposition called on the government to re-establish “the right platforms” in order to discuss and come up with a sustainable fiscal model for the challenges flagged by the European Commission.

In a statement, PN deputy leader and shadow finance minister Mario de Marco said the Opposition welcomed the EU Commission’s recommendation to abrogate Malta from the Excessive Deficit Procedure.

Malta was also declared compliant with the Stability and Growth Pact.

“This is an important development for our country, which places the Government in a favourable position to instill a positive sentiment in achieving common goals; namely, in boosting local and foreign investment; attaining fiscal consolidation without inhibiting growth; and to undertake the required structural reforms, notably on pensions and health care,” de Marco said.

De Marco however warned that the positive development should not be considered to be an end in itself, but a stimulus to address immediate and future fiscal challenges courageously.

The Government is committed to achieve a fiscal balance by 2019, and to cut the country’s debt level by circa 7% of GDP by 2018.

During the course of 2015, the target is to narrow the deficit by 0.6% of GDP or by circa €50 million, where the latter will be assessed in terms of progress achieved in undertaking structural fiscal consolidation rather than a correction dependant on one-off factors.

In this respect, the Commission highlights the point that its projections for 2015 are indicating that this requirement could be an issue.

“The Opposition notes important observations flagged by the EU Commission report on the sustainability of Malta’s public finances which the report considered to be at risk in the long term. This observation by the EU Commission was made in view of Malta’s ageing factor, notably on the expected future outlays on pensions and the provision of health care, and the government’s lack of progress in addressing the situation.”

The Opposition called on government to start seriously working in mitigating future fiscal and economic challenges, for the benefit of the younger generation.

“Addressing the risks flagged by the Commission is a responsibility that should be borne now by present politicians. The Opposition is ready to contribute in the best interest of our country, by calling on the Government to re-establish the right platforms, where all stakeholders involved, including the Opposition, will discuss and come up with a sustainable fiscal model for the challenges flagged by the Commission,” de Marco said.

“A vision and a drive to act as a nation on these challenges are considered to be the best way forward.”