Finance Minister Tonio Fenech hit the nail on the head when he said the government absolutely must get this budget right.

For far too long have the citizens of Malta ignored the chaos which is gripping Europe. Equally, for far too long has the opposition been ignoring the same chaos and continued to spout parochial politics and nonsensical promises.

This is about survival. Europe is on the brink. If Italy does bite the bullet, then everyone needs to understand that 20 % of the European Union’s GDP will go down the drain. Tonio Fenech, absolutely must get this one right, there is no margin for error.

As we have said in previous leading articles, far too many people in Malta are not looking beyond the horizon. This is not about four-day weeks, or having to cut back on family leisure expenditure, this is about our country surviving what could potentially be the biggest crash since the 1930’s. Experts are already saying that the 2008 crisis will be dwarfed by what is looming ahead.

The one thing that Malta can do to retain, yes retain, the good credit rating and market trust that it enjoys, is to bring the deficit down to under 3% of GDP as stipulated by Maastricht. For the umpteenth time, now that people are listening, we will explain. Bringing the deficit down to 3% still means that we are incurring more debt each year, and as Malta’s stands at about 69%, we must, at some point register a surplus in order to balance our books.

Last year, this newspaper’s budget headline was, in fact, ‘balancing the books’ and this is what the government needs to do. It is about showing that we are strong like Germany and the Nordic countries. It is about showing that Malta is the place to invest. It is about showing that Malta is a safe bet, that is all anyone is looking for right now.

The government said that it will continue to work towards bringing the deficit down even further, targeting 2.2% as its next ‘checkpoint’. If Malta does not do this, and get it right, then we will head down the same route as Italy, Ireland, Greece, Portugal and Spain. The outside world perceives us as having done pretty well, but with growth slowing next year, it is going to be a challenge to continue to register a good performance.

Europe is in meltdown. Yet, we fair reasonably well. At least, opposition leader Joseph Muscat yesterday spoke moderately, and called for a responsible budget. Let us hope that we are all on the same page when we talk about a responsible budget. The government has said that there will be no shocks. But in our view, a responsible budget means doing whatever it takes now, to make sure that Malta will be in a decent position a few years down the line.

This is the most important budget that this country has ever faced. It is not going to be about tax band reductions or increased revenue, it is going to be about safeguarding jobs and attracting investment. Perhaps the fairest way for government to increase revenue would be to increase VAT on certain items. It’s the fairest tax around. To put it simply, if one can afford to spend €100,000 on a car, perhaps they can afford an extra €10,000 on top. It is a tax on consumption. Our belief is that this budget will be prudent, targeted and responsible. Our collective future depends on it.