Six months ago, the country was gripped by the debate on what should have been a social pact involving the government, the employers and the trade unions. Long hours and long days of discussions did not bring the three social partners together, and no agreement was reached. The failure prompted the government to take the steps it had previously announced in its budget for 2005.

Six months down the line, talk of a social pact has practically withered away. It is hardly ever mentioned and, when it is, it is usually someone who expresses disappointment that no accord was reached. The last to do so was the Chamber of Commerce and Enterprise president Louis Apap Bologna when the chamber invited unions for a get-together some days ago.

When negotiations were taking place last January, it was evident that while the employers were prepared to accept what was being proposed by the government – in spite of the fact that they were not fully in agreement with its suggestions – the unions were more reluctant and, although they held marathon meetings between themselves, did not come up with a common position.

The deal eventually collapsed.

Is there a chance that the government, the employers and the unions will ever reach an agreement on a social pact?

At this stage it looks unlikely, although things move fast in politics. For all we know, meetings may have been held behind closed doors and far away from the media in a bid to bring the social partners closer.

Still, it must be said that it is difficult to patch up the differences that emerged last January.

There seems to be too much distance between the government and the employers on one side, and the unions on the other, on the social pact presented six months ago.

This distance existed in January when the talks were being held, and is still present now.

Failure to reach an agreement on the social pact has not helped the country’s situation. The economy is still struggling to re-emerge from its bleak period and news from Brussels that no accord was reached on the EU budget for 2007-2013 has certainly not helped boost confidence.

Of course, the country’s current problems cannot be blamed solely on the social pact failure. Matters have been deteriorating for quite some time, and no matter how hard the government tries to paint an encouraging picture, the truth is that the prevailing situation is not as rosy as one would like it to be.

The unemployment problem remains a stiff subject that is not being tackled in the right way. Investment has come but it is apparently not enough, and today the government cannot hide behind the excuse of uncertainty it so often mentioned before the 2003 election, because that issue has now been resolved.

The news that there could be dismissals from ST Microelectronics, Malta’s major contributor to the economy, has also rocked the boat that little bit more, although there has as yet been no confirmation that a few of the 3,000 jobs that ST will be shedding in Europe will come from Malta. It is hoped that Malta will not be affected by such a measure.

All in all, a stronger effort needs to be made, by all parties concerned, to help lift Malta from the troubles it has been encountering for the past years. Problems will not go away on their own. These need to be tackled and solutions found.

What is important is that one sees the overall picture when dealing with them, rather than the interests of a particular sector.

Otherwise, the whole country will suffer.