The Malta Independent 16 April 2024, Tuesday
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Operation restart

Thursday, 23 January 2020, 12:53 Last update: about 5 years ago

Now that the country has returned to a semblance of normalcy, with the election of a new prime minister and the appointment of a new Cabinet, the country expects the wheels of the economy to start turning again.

It's bad enough as it is to have practically lost the Christmas season because of protests, the usual rainy days and the confusion as Prime Minister Joseph Muscat stepped down. The country must now return to full production.

It should not be difficult to do so as there are now serious issues that require urgent attention from the new prime minister and his Cabinet. Mostly, it is 'business as usual'.

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That, we hold, is the most urgent task ahead for the coming weeks - to get the wheels of the economy working again. That is what 'continuity' which is supposed to be the new government's signature tune, means.

At the same time, however, it would not be amiss to spend some time to analyse the workings of our economy and to take a long view of it. We need to understand the stresses, the opportunities but also the threats in it.

For the past years, as the economy boomed, everything looked up, the going was good. But now, after some years of boom, a certain tiredness has crept in and needs by dissected and analysed. The economy has plateaued.

Generally speaking, the economy boomed through the benefits of the passport scheme (the IIP), the influx of so many third country nationals working  at basic wages, and through the gaming sector. To this the government tried to tack on the Bitcoin innovation but, at least according to the word on the street, this has been rather still-born and for all the hype on Bitcoin Island, there have been very few takers.

At the same time, for all the construction going up, rents have gone up even more and many properties are beyond the reach of normal middle-class persons. The government did come up with a rental reform but it has not taken off so far and so we do not know if it will work. Meanwhile, the number of those at risk of poverty is quite high  for an island like Malta and anecdotal evidence says that people on pensions slip below the poverty line, though there has been some improvement here too.

For all the injection of foreign capital, we do not seem to see new ventures, new factories, the injection of new technology as we used to see in the past. True, the economy has changed but a significant part of it is rather flighty, here today and somewhere else tomorrow.

The brand Malta has fallen into disuse and with it the pride we used to enjoy at anything made in Malta. We do not seem to produce anything 'of Malta' perhaps for lack of incentives, for a reliance on what we can import from abroad.

Some things however are still going strong, tourism for example with the advent of low cost carriers which has enabled us to get figures that were unheard of in the past. But we must respect and protect this industry from the construction craze that has turned many tourist areas into development zones full of dust and noise. People too seem to have discovered BnB in a big way and the hotels and official accommodation are feeling the stress.

So in a word, not all that glitters is gold and the country as a whole could do with a general tidying up and cleaning effort. The many worthwhile roadworks need to be completed and continue to be maintained.

But above all, the country must now work to improve its international name after so many months of claims and proofs of generalised corruption. Things will not improve just with the departure of a prime minister, but more so with the continuation of the so many judicial processes that are continually bringing up more and more examples of infractions of the rule of law. Without any pogrom, those who are guilty must face justice, without fear or favour.

In other words, the country must come back to normalcy but this is a state of affairs where justice is carried out and the guilty get their just deserts. This is not a time for protests on the streets but for the rule of law to be allowed to work at all levels. We trust the new prime minister keeps his word and brings the country back to normalcy where justice is supreme.


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