The European Union is facing many challenges and there are volatile and delicate situations, the Prime Minister told a Meusac Core Group meeting.

Looking around, he said, they could see the result of economic policies which did not look at the long term and sustainability. They could see the result of policies which pampered to the popular interest. Countries have unemployment, especially among the young, tax increases and deficits which require measures of austerity.

Malta’s results, he said, are a contrast. It had registered more economic expansion than the European average and the eurozone, it had the third fastest rate of job creation in the EU last year, it had registered the sixth lowest rate of unemployment in the EU, and a deficit that was lower than the established 3% of the gross domestic product.

None of these results was a coincidence. They were the results of policies built on responsibility, industriousness, courage to take decisions, and the belief that employment is the foundation of economic success.

It was important to remain on the road taken. The EU is working on a strategy which aims to create jobs, he said. They had to have fiscal consolidation. They could not have a Europe and countries that are strong if public finances are not sound. They could not have sustainable expansion if they did not have fiscal aims.

Dr Gonzi said they had to have the political will to make structural reforms, which are needed to register progress.

They had to have economic expansion which creates employment. EC president Jose Barroso has laid stress on the importance of careful use of EU funds. Malta is investing this money in the people and society, and projects which create jobs, in tourism, health and education.

Mentioning projects, he referred among others to schemes for businesses, for tourism operators, training programmes, education, an oncology centre, new roads, and bastion restoration.

Dr Gonzi said the road they had taken is yielding results. They had to remain responsible and mature in the day-to-day decisions.