PL opposition Labour leader Joseph Muscat has been quoted as saying that 4% economic growth is “realistic” for Malta, going against PL candidate and economist Edward Scicluna’s own estimates of 2% growth.

“Labour’s projections show that economic growth will peak at 4%, and then collapse. They are basically saying that they are going to get the country into a recession,” finance minister Tonio Fenech said during a press conference.

Dr Fenech said that the PL has not concrete proposals on job creation, saying that the PL’s targets are the targets of others.

“The IMF and European Commission projections reach until the 2014 and 2015 respectively. What about after that. The legislature lasts until 2017/2018,” Dr Fenech pointed out.

Dr Fenech expressed his concern at Dr Muscat’s “hands off” approach when it comes to the manufacturing sector in Malta. He said that had the government not intervened in the sector, 5,000 jobs would have been lost.

“Labour should stay in opposition if it does not want to disturb industry. Buzzwords do not create jobs. Muscat thinks that he can create something from nothing. He is not a magician,” Dr Fenech said, referring to Dr Muscat’s promise to keep his hands off the tiller when managing the economy.

Dr Fenech insisted that economic growth depends on “concrete measures and policies, incentivising investment and job creation.”  

“Labour has the mistaken impression that in manufacturing all he has to do is not interfere. Labour’s electoral programme just states that it believes in manufacturing. Unfortunately, manufacturing is not about faith,” the finance minister said.

He pledged that €100 million will be invested in manufacturing, granting not only tax credits but cash grants geared towards capital investment.