Many Maltese people are mistakenly under the impression that the country registers a huge deficit. It is not at all the case.

While we do believe that Malta has been hit by the recession, we must also state that in comparison with other European nations – our financial record is almost spotless. The last official deficit (as a percentage of GDP) was registered at 3.2 per cent in November. When we compare that figure to the 12 per cent in Greece, 10 per cent in the UK and Spain, nine per cent in Portugal and 5.4 per cent in Italy, we perform well.

When one looks at our unemployment, which is registered at five per cent (ETC) or seven-odd per cent (labour force survey), it also compares favourably with other European nations.

At the European Union summit in Brussels last week, Prime Minister Lawrence Gonzi said that one of the main reasons why Malta weathered the worst of the recession was its fiscal prudence. And one would have to agree. While the government did register an increased deficit in 2009, this was to be expected due to the efforts to stimulate the economy, micro ‘bailouts’ and more.

But at the end of the day, the simple fact of the matter is that Malta’s finances are not as bad as many people believe – in fact they are much better. One must not confuse this issue with spending power, wages and salaries – we are simply saying that the government coffers and the amount of shortfall as a result of government spending to stimulate growth is well within the parameters set out by the 1995 Maastricht growth and stability pact.

In fact, the Prime Minister went on the record in saying that, in his view, the Maastricht Treaty has proved itself to be a good benchmarking model. Again, one must not confuse this issue with standard of living. If one were to look at Portugal and Spain, the vast majority of the people were in dire, dire straits just a couple of decades ago.

If we think we have backward areas, then we really should take stock. This is perhaps one of the reasons why the two countries (and others) are in a bit of a pickle. Governments saw their major cities grow and, accordingly, it was spend, spend, spend for year after year, and it has caught up with them.

In Malta, we get impatient. We want our roads, we want our cars, we want more choice, we want higher salaries, we want broadband in every household and more. But if we were to just throw caution to the wind, we would end up in a similar situation to Greece, Portugal or Spain.

There will be some who believe that Malta cooks its books like Greece did, taking end figures and working back over to twist them to our own advantage, but one can rest assured that if this were to be the case (a notion which this publishing house does not entertain), the European Commission would be breathing down our neck sooner rather than later (post-Athens debacle).

Europe is nowhere near to being out of the woods yet and the next few years will be crucial for the euro. What Malta must do, is do as it has done since it began (the second round – let’s forget the 96-98 hofra) EU accession negotiations. We must not run before we can walk and we must continue to be prudent, cautious and credible. Allowing things to develop at a slower pace might be frustrating – but it is certainly better than having your pay frozen, taxes increased, losing your job and worse. Just ask Stelios, he’ll set you straight.