“A balance needs to be found between maintaining public finances and increasing demand, increasing productive employment through restructuring with a shift from old ailing industries to newer and healthier ones, and pushing research and innovation at all levels”

Last week I had the opportunity to address a meeting of the International Organisation of Employers (IOE) hosted by the Malta Employers Association (MEA). The meeting, which was attended by a large number of local and foreign delegates, discussed global challenges for business, achievement of competitiveness after the crisis, workforce productivity and innovation and the changing role of employers’ organisations after the recession.

In order to meet global challenges, achieve competitiveness, increase productivity, foster innovation and facilitate employers’ embracement of their changing role, governments must promote viability of enterprises and create an environment favourable to enterprise development and job creation. These issues are at the forefront of the agendas of both MEA and Government.

These goals are vital ingredients for the growth of the economy and wealth production. But in order to reach these goals we must first achieve stability. In this regard Government, MEA and other social partners must focus on policy measures and tough decisions that need to be taken to achieve the degree of stability that is conducive to the strengthening of a just and fair society.

The economic crisis that has engulfed Europe must not veil other challenges that we were already facing before the financial meltdown hit the continent. Prior to the much publicised economic crises, Europe was already facing problems with public finances related primarily to the financial sustainability of pensions and social security systems, health and education. These have been with us for some time in a background of changing demographics and increasing expectations.

Questions are continually being raised regarding financing, eligibility and amount of benefits in programmes related to these sensitive sectors. Various programmes are being looked at more critically to ensure adequate cost-benefit. The perennial dilemma we face relating to deciding which programmes to keep, which to bolster, which to introduce and which to axe is of greater importance now.

Difficult decisions have to be taken all around Europe but the overall process has to be managed carefully to avoid social unrest. Social dialogue is vital to map the sometimes tortuous path that needs to be followed.

A balance needs to be found between maintaining public finances and increasing demand, increasing productive employment through restructuring with a shift from old ailing industries to newer and healthier ones, and pushing research and innovation at all levels. This is vital if Europe is to become the knowledge-based economic bloc we all wish it to be.

In Malta, enterprise-based assessments and assistance packages to help enterprises experiencing difficulties due to the international recession were put forward. Aid packages were tailor made and limited to assisting those enterprises which were temporarily experiencing difficulties as a direct result of the crisis. They were not extended to companies which had pre-existing underlying competitiveness problems.

We are not out of the woods yet but, thanks to these measures and other initiatives, we are experiencing recovery. There are steady positive signs which are very welcome. One must however remember that there is a considerable human cost in a recession, and unemployment levels should always be a primary concern.

While social security support is vital in the short term in cases of unemployment, it is important to ensure that laid off workers do not lose their skills and their motivation to help themselves by seeking productive employment.

This is why Government is making all possible efforts to give them more skills through retraining, thus making them more employable. Active labour market measures, together with lifelong learning, so crucial in normal times, takes on an added urgency and importance in times of crisis, as well as in the period of recovery where investment decisions often depend to a considerable extent on the presence of a skilled workforce ready to embrace any opportunities that present themselves.

The crisis may appear to be over, but its effects will be with us for years to come. A lot of work still needs to be done to manage the recovery properly and appropriately, especially if this process takes longer than anticipated.

However I am also convinced that by working together we can do it. Positive signs are already clear to those who want to see them and I firmly believe that engaging all parties who can make a meaningful contribution towards achieving our pre-set goals is not just a healthy democratic exercise but a guarantee of eventual success.

Chris Said is parliamentary secretary in the Office of the Prime Minister.