Muscat mulls ‘common sense, compromise’ after environment protest

Prime Minister Joseph Muscat has mooted the possibility of “common-sense, compromise solutions” in his brief reaction to Saturday’s massive protest calling for the protection of the environment and opposing Labour’s plans to build a private university over 90,000 square metres of a natural park at Zonqor Point.

With 3,000 people out in the streets of Valletta delivering a clear message of protest at Labour’s environmental stewardship since its election, Muscat said he had “taken note of the people marching in the street”.

“Yes, we have to respect the environment. We get the message, we’re not a stubborn government. But we also know the economy must grow,” Muscat told Super One Radio.

“I believe there are common-sense, compromise solutions… which the silent majority at home will also support,” he said.

Muscat’s intervention on his party’s radio station mainly focused on his stewardship of the economy, suggesting that while the past two years had seen a rate of growth four times that of the EU’s economy, the risk of a Greek default could expose Malta to further trouble. 

While this week the European Commission lifted excessive deficit procedures against Malta, on Monday Muscat will be in Brussels with his counterparts to discuss Greece’s fate.

Malta has one of the EU’s largest exposures in terms of GDP, with its loan facility to Greece representing 5% of its gross domestic product. “We’re looking for the best possible deal for Malta, Europe and Greece,” Muscat said.

Barclays: Official exposure to Greece in EMU by country and type pic.twitter.com/5QKkrsWr77

— Fabrizio Goria (@FGoria) April 16, 2015

“But the main issue is to see what we acquired in the first two years is not undermined by a Greek default,” he said, noting that a €1.7 billion run on Greek banks had placed the beleaguered nation further in the doldrums.

“We managed to get our finances in line without hurting the people,” Muscat said of Malta’s exit from the EU’s deficit procedure.

“While people protested in the UK yesterday against spending cuts, we managed to reduce income tax twice, cut energy bills, cut stamp duty for first-time buyers, introduced free childcare, and get the country’s finances on a sound footing. Today our economy has grown four times the rate of the EU’s economy.”

A survey published in MaltaToday today has shown that over 50% of respondents acknowledge that Labour’s economic management is positive.

“I’m sure people expect more, but they know we’ve turned a corner on the economy,” he said.

“Had we not been in this situation, we could have been cutting health and education spending… we’re also not going to increase pensionable age, as recommended by the EC, but increase minimum pensions for those who are about to retire so that they do not fall into the poverty trap.”