Being able to improve the economic situation in a country is an accomplishment, receiving a report that states that the economy has improved enough to join the second largest monetary system in the world is a greater accomplishment. That is what happened last Wednesday, when the European Commission confirmed that Malta has reached the necessary criteria to join the eurozone.
This is a huge difference to what was going on 10 years ago. In 1997, when Alfred Sant was Prime Minister, the country had a deficit of Lm127 million and by 1998 this had increased to a record high of Lm150 million.
When the Nationalist Party took office in 1998, it had two missions to accomplish – the first was to re-open negotiations with the European Union and the second to regenerate economic security while at the same time attracting quality investment to our shores.
It would be no easy feat in either situation, but perseverance, persistence and determination prevailed over all obstacles. Especially since joining the European Union, our country, led by Prime Minister Lawrence Gonzi, has continued to reduce the deficit, while at the same time reducing taxes.
Back in 2004, the deficit was 4.9 per cent of GDP, or Lm93.5 million. Year by year, this has been reduced, reaching 2.6 per cent by the end of last year and continuing on the same lines this year. All this means that our country is on the right track and because of these results we were certified by the European Commission and the European Central Bank last Wednesday, when they gave a positive response to our application to join the euro zone on 1 January.
This shows that the Nationalist Party in office has made a U-turn in our economic situation, and from an economic crisis has managed to build a “credible and sustainable” economy.
The positive report given by Commissioner Almunia has not been easy to achieve. Malta had to pass the five Maastricht criteria without any exceptions. Lithuania, one of the Baltic States that joined the EU in 2004 along with Malta, was prevented from adopting the euro on 1 January, due to the fact that their rate of inflation was 0.1 per cent higher then the rate set in the criteria.
The other tests our economy had to face concerned the national deficit, which had to reach the three per cent of GDP mark or lower, a stable exchange rate, a satisfactory interest rate and the national debt being lower than 60 per cent of the wealth produced over the last year or on the right track to reach that level.
We have reached our objective to ensure a stable and credible economic situation for us to benefit from its fruits. Joining such a solid economic and financial bloc is no joke. With the flow of investment on the rise, this event comes at an ideal time to assure further success in the global market.
Alfred Sant in government increased the water and electricity bills when the oil price was still low – at $12 a barrel, bringing an economic crisis that led the country to go to the polls and Labour losing government after 22 months.
Proposals to build our economy on boot repairs and salt production show that the outdated economic mentality still reigns in the MLP. It is quite a contrast with Prime Minister Lawrence Gonzi’s vision of making Malta a centre for ICT and financial services.
When one considers, that thanks to Nationalist administrations, in less than 20 years Malta has been transformed from an isolated country into a country that is being recognised for its economic achievements and the prosperous future ahead of us, that is a good result for hard work.
By associating ourselves with a macro economy such as the eurozone we are assuring further economic security and competitiveness in the international market, as well as attracting foreign investors to our shores. The investment will solidify our economy, generate quality jobs and promote our country with other investors.
The Nationalist Party believes that our country has the potential to compete in foreign markets. Investors are attracted to Malta not only because our geographical position attract investors, but also because of the ability and professionalism of our workers. That is why the Maltese government has continued to invest in education. Our main resource must be nurtured so that it may develop all the necessary skills and benefit from them.
We, the Nationalist Party, believe in the potential of the Maltese people and that is why we invest in empowering our society. It is a course of action that will improve our country, our children and ourselves that will guarantee a prosperous future.
David Casa is a Nationalist MEP
www.davidcasa.eu
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