This was the argument put forward in a statement by Malta Labour Party deputy leader Dr Charles Mangion yesterday. He said that despite the Prime Minister’s insistence that Malta adopts a mechanism that will finally see us adopt the single currency, the commission has repeatedly confirmed that Malta fails in four of the five necessary criteria for the joining of the Euro.

Dr Mangion mentioned the lack of stability in inflation, the rise in VAT and the introduction of VAT on medicines that were exempt until May, as well as the new eco-tax, as factors which contributed to Malta’s failure. He added that the commission criticised the government over the national debt and the financial deficit, with higher taxes still not contributing to a decrease in both levels.

Dr Mangion added that the commission had brought the country’s dire economic state to the attention of the government a year ago and the situation had deteriorated instead of improving. There is, he said, no economic plan to give the country clear direction.

In conclusion, Dr Mangion said that the country is losing its competitive edge and this is apparent due to the dearth of foreign investment. He said the MLP will study the situation properly and will do its very best to address the country’s economic problems for the benefit of Maltese and Gozitan families.