On the other hand AD expressed its concern that there has been no consultation with the social partners on a matter of vital importance.
In a statement with reference to the opinion expressed by the European Commission on 24 June, the party spokesman on finance, tourism and industry, Edward Fenech stated, “we welcome the fact that government is finally drawing up a convergence programme to reduce the fiscal deficit to levels stipulated by the EU’s Stability and Growth Programme.
“AD is however concerned that the economic and social implications ensuing from a convergence programme that projects to lower the fiscal deficit down to around Lm65 million per annum from its present Lm105 million per annum within two years, may not have been adequately evaluated.
“Unfortunately the convergence programme has joined the growing pile of covert political dossiers that are not made available to social partners for comment. Since the anticipated economic and social outcomes of this programme remain unknown, it is not surprising that government fiscal policy remains a major source of economic uncertainty.”
The Green Party’s chairperson, Dr Harry Vassallo said, “Finally government has committed to a plan to rein in the budget deficit that has been a source of major economic uncertainty during the last seven-eight years. As expected it has been the impetus of a formal warning given to our government by the Commission that has kick-stated this reaction.
“While we welcome this development, AD is surprised that this convergence programme has been drawn up without any dialogue and/or consultation with the social partners within a forum such as the MCESD.
“Alternattiva Demokratika, which recently has been invited by the Prime Minister to join the MCESD, believes that this fiscal convergence programme should have formed an integral part of the Social Pact that the government itself had until recently shown much enthusiasm in seeing finalised by end June.
“Despite the government’s delay in initiating the requisite dialogue to compile the Social Pact, AD reiterates its call for a realistic and workable pact that can act as the catalyst to securing our national economic well-being.”
“As a responsible party we are ready to contribute to the economic wellbeing of the country by participating in the drafting of a social pact, legitimised by a wide consultation process within the MCESD. The country’s problems can only be solved by working together for the best of our country,” concluded Dr Vassallo.