Abela ‘could have prevented excessive deficit procedure’ but subsidies remain necessary says Grech

Prime Minister Robert Abela knew Malta was set to face an excessive deficit procedure from Brussels and could have prevented it, Opposition leader Bernard Grech has said. 

On TVM’s Xtra, Grech was asked about the European Commission’s announcement that Malta is set to face an excessive deficit procedure, the corrective action sanctioned by Brussels for high spending members. The action stems from the general government deficit exceeding the 3% of GDP threshold, a consequence of significant government spending in 2020 and 2021 to mitigate the economic inertia caused by the COVID-19 pandemic.

“If Abela needs to save money, he should cut waste, theft, and corruption, not the subsidies and aid that support our people,” Grech said.

The European Commission has recommended Malta to “wind down” its emergency energy support measures by next winter. Given the country’s reliance on imported energy, any measures should be targeted at supporting vulnerable families and businesses, the Commission advised.

Grech acknowledged that energy subsidies remain necessary for many in Malta, but he also emphasised that the current situation could have been foreseen. “The warning from the European Commission could have been anticipated months or even years ago,” Grech noted, highlighting that the Nationalist Party had previously advocated for alternative energy solutions.

Grech criticised Abela for his lack of forward planning - referring to a recent ONE Radio interview with the Prime Minister, Grech claimed that Abela had an internal report warning him about the European Commission’s impending actions and therefore should have been prepared. “This is where the country sits now. It has a government and a leader who does not think, anticipate, or plan ahead,” Grech said.

‘Metsola a brand name’

Bernard Grech praised Roberta Metsola, President of the European Parliament, referring to her as a “brand name”.

“She has succeeded on an international level, on a European level, and yes, she was part of this [election] success,” Grech stated.

Grech made these remarks in response to a question about the impact Metsola had on the recent European elections. He emphasised that the Nationalist Party remains a united team, just as it was before Metsola’s rise to prominence.

Prior to the elections in June, there was speculation that Grech might be replaced if the Nationalist Party did not achieve its goals. With the possibility of a leadership change, many hoped Metsola would return to local politics and lead the party to the long-sought general election win.

When asked about Metsola’s potential involvement in the general election in two and a half years, Grech said: “Metsola is a great political partner, whether she is the President of the European Parliament or not.”

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