“The term ‘convergence’ is most appropriate since the Chamber has always insisted that public expenditure should be controlled and consequently the policies of the Chamber and Government are converging.

“The Chamber shall endeavour to contribute extensively to the discussion on the Convergence Programme document in order to offer further ideas for consolidation and assist in a smooth implementation of the programme”.

Mr Apap-Bologna was referring to the Malta Council for Economic and Social Development meeting in which the Prime Minister presented the document entitled Malta: Convergence Programme 2004-2007.

The Chamber regards this document as having possible wide ranging implications for the Maltese economy. Aimed at Malta’s medium-term macroeconomic policy objectives, the document is perceived to act as a forerunner to the next Budget speech.

Consequently, the chamber will be analysing it carefully, through its internal committees.

In its analysis, the chamber will strive to ascertain that fundamental issues, including the timing of the adoption of the Euro and ERM II, the feasibility of fiscal targets to reduce the budget deficit and the reform of public health and pensions system, are adequately addressed.

In the circumstances, the chamber still insists that the country’s financial problems must not be solved through higher taxation but through maximum efficiency in tax collection and a more responsible public expenditure programme with an emphasis on clamping down on abuse, wastage and additional expenses incurred through mismanagement and bad planning.

Unfortunately, government is increasing the tax burden on business and private individuals. This runs counter to other examples in Europe and the rest of the globe where taxes are being reduced. VAT was increased by three percentage points last January and an Eco-Contribution (acting as a consumption-tax) is now under discussion.